Competing-Destinations Gravity Model: An Application to the Geographic Distribution of FDI

Journal article | Zeitschriftenartikel

The competing-destinations formulation of the gravity model ensues from the fact that unlike the classical version, this approach explicitly acknowledges the interdependence of the flows between a set of alternative locations, i.e. countries-recipients are competing for FDI. This paper examines empirically a range of theoretical hypotheses about the determinants of FDI location in a panel data regression framework. The results of the estimation of a gravity model lend support to the proximity-concentration and internalization hypotheses. Also, the fact that FDI has been found to be decreasing in the competition posed by alternative locations is suggestive of the superiority of the competing-destinations version of the gravity equation over its classical formulation.

Object Details

• Extent: Seite(n): 2237-2253
• Language: Englisch
• Notes: Status: Postprint; begutachtet (peer reviewed)

References and Relationships

• Bibliographic citation: Applied Economics, 41(17)

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mello-Sampayo, Felipa de
• Event: Veröffentlichung
• (when): 2009

Further information

• DOI: https://doi.org/10.1080/00036840701765346
• URN: urn:nbn:de:0168-ssoar-241796
• Rights: GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln
• Last update: 21.06.2024, 4:27 PM CEST