We conducted an inquiry on the short run and long impact of energy use, trade openness, exchange rate foreign direct investment (FDI) in Indonesia from 1981 to 2015. Energy use is one key variables because host countries cannot easily anticipate short�term shortage, whereas investors interpret such shortage as indicator progress readiness manufacturing sector. error correction model explain...

Studies of foreign direct investment (FDI) distribution in the US is voluminous but such studies on a developing country are rare. We fill the void by analyzing the spatial and temporal variation in FDI among China’s 30 provinces. We believe this is the first study of its kind. Other than some “standard” results, our pooled regression finds that the cumulative FDI has a negative impact on the n...

This paper empirically examines the extent to which the FDI – trade relationship is affected by host-country heterogeneities associated with the development (income) and market servicing roles of Japanese FDI host countries. Using the counts and values of Japanese aggregate FDI and trade flows into more than 100 geographically and developmentally diverse countries, it is shown that Japanese FDI...

In this paper we re-examine the regional determinants of FDI in China using both total FDI flows, and FDI flows disaggregated by entry mode. Building on both the FDI location and entry mode choice literatures, we argue for the existence of mode-specific location advantages, and test for their existence. We first specify and estimate a location model of aggregate FDI flows to Chinese regions. Us...

In a global context foreign direct investment (FDI) and migration substitute one another in the matching process between workers and firms. However, as labor flows can lead to the formation of business networks, migration can actually facilitate FDI in the long-run. We first present a stylized model for a small open economy illustrating these offsetting effects. We then use U.S. data on bilater...

Foreign direct investment has contributed significantly to Chinese economic development. Yet the geographic distribution of FDI is quite uneven. Compared with the inward FDI in the eastern and mid regions of China, the Western region has attracted less FDI. FDI is fuelling much of the rapid economic leap of the developed regions of China and the significant inequity grows further. There are man...