Institutions and offshoring decision

Arbeitspapier

Several papers have proven that the institutional environment of the receiving country can influence the choice to establish an FDI. Property rights theory suggests that contract enforcement matters differentially across sectors. This paper is the first attempt to test whether institutions matter differentially across different sectors in FDI decision. Using data on U.S. Direct Investment Abroad, I find that institutional characteristics of the country and the industry positively affect the volume of offshoring between U.S. companies and their affiliates. The suggested argument is stronger for the intermediate products, while the evidence is weak for products ready for sale.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2074

Classification and Topics

• Classification: Wirtschaft ; Trade: General ; Multinational Firms; International Business
• Subject: Direktinvestition ; Offshoring ; Amerikanisch ; Institutionelle Infrastruktur ; Standortfaktor ; Branche ; USA ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Nicolini, Marcella
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/26119
• Last update: 10.03.2025, 11:42 AM CET