What Explains Intra-Asian FDI Flows? Do Distance and Trade Matter?

This paper examines intra-Asian FDI flows using bilateral data over the period 1990 to 2005. Does the so-called distance puzzle that has characterized trade and FDI based gravity models exist in the case of intra-Asian FDI flows as well? And if so, to what extent can it be explained by informational assymetries and international trade as opposed to physical distance? These questions are explored in this paper.

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Bibliographic Details
Main Authors: Rajan, Ramkishen, Hattari, Rabin
Format: Journal Article biblioteca
Language:EN
Published: 2009
Subjects:Country and Industry Studies of Trade F140, Multinational Firms, International Business F230, International Linkages to Development, Role of International Organizations O190,
Online Access:http://hdl.handle.net/10986/4858
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Summary:This paper examines intra-Asian FDI flows using bilateral data over the period 1990 to 2005. Does the so-called distance puzzle that has characterized trade and FDI based gravity models exist in the case of intra-Asian FDI flows as well? And if so, to what extent can it be explained by informational assymetries and international trade as opposed to physical distance? These questions are explored in this paper.