A Mean-Variance Explanation of FDI Flows to Developing Countries

Publikation: Working paperForskning

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A Mean-Variance Explanation of FDI Flows to Developing Countries. / Sunesen, Eva Rytter.

Department of Economics, University of Copenhagen, 2008.

Publikation: Working paperForskning

Harvard

Sunesen, ER 2008 'A Mean-Variance Explanation of FDI Flows to Developing Countries' Department of Economics, University of Copenhagen.

APA

Sunesen, E. R. (2008). A Mean-Variance Explanation of FDI Flows to Developing Countries. Department of Economics, University of Copenhagen.

Vancouver

Sunesen ER. A Mean-Variance Explanation of FDI Flows to Developing Countries. Department of Economics, University of Copenhagen. 2008.

Author

Sunesen, Eva Rytter. / A Mean-Variance Explanation of FDI Flows to Developing Countries. Department of Economics, University of Copenhagen, 2008.

Bibtex

@techreport{463df4c06aa011dd8d9f000ea68e967b,
title = "A Mean-Variance Explanation of FDI Flows to Developing Countries",
abstract = "An important feature of the world economy is the close global and regional integration due to strong trade and investment relations among countries. The high degree of integration between countries is likely to give rise to business cycle synchronisation in which case shocks will spillover from one country to another. This will have implications for the way investors evaluate the return and risk of investing abroad. This paper utilises a simple mean-variance optimisation framework where global and regonal factors capture the interdependence between countries. The model implies that FDI is driven by the risk-adjusted rate of return as well as global and regional spillovers. The preditions of the model are con…rmed in a sample of 60 countries over the period 1970-2000.",
keywords = "Faculty of Social Sciences, foreign direct investment, risk, portfolio, business cycles",
author = "Sunesen, {Eva Rytter}",
note = "JEL classfications: F21, G11, R11, E32",
year = "2008",
language = "English",
publisher = "Department of Economics, University of Copenhagen",
address = "Denmark",
type = "WorkingPaper",
institution = "Department of Economics, University of Copenhagen",

}

RIS

TY - UNPB

T1 - A Mean-Variance Explanation of FDI Flows to Developing Countries

AU - Sunesen, Eva Rytter

N1 - JEL classfications: F21, G11, R11, E32

PY - 2008

Y1 - 2008

N2 - An important feature of the world economy is the close global and regional integration due to strong trade and investment relations among countries. The high degree of integration between countries is likely to give rise to business cycle synchronisation in which case shocks will spillover from one country to another. This will have implications for the way investors evaluate the return and risk of investing abroad. This paper utilises a simple mean-variance optimisation framework where global and regonal factors capture the interdependence between countries. The model implies that FDI is driven by the risk-adjusted rate of return as well as global and regional spillovers. The preditions of the model are con…rmed in a sample of 60 countries over the period 1970-2000.

AB - An important feature of the world economy is the close global and regional integration due to strong trade and investment relations among countries. The high degree of integration between countries is likely to give rise to business cycle synchronisation in which case shocks will spillover from one country to another. This will have implications for the way investors evaluate the return and risk of investing abroad. This paper utilises a simple mean-variance optimisation framework where global and regonal factors capture the interdependence between countries. The model implies that FDI is driven by the risk-adjusted rate of return as well as global and regional spillovers. The preditions of the model are con…rmed in a sample of 60 countries over the period 1970-2000.

KW - Faculty of Social Sciences

KW - foreign direct investment

KW - risk

KW - portfolio

KW - business cycles

M3 - Working paper

BT - A Mean-Variance Explanation of FDI Flows to Developing Countries

PB - Department of Economics, University of Copenhagen

ER -

ID: 5520419