Factor endowments, economic integration, round-tripping, and inward FDI: evidence from the Baltic economies

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Collection:
Mokslo publikacijos / Scientific publications
Document Type:
Straipsnis / Article
Language:
Anglų kalba / English
Title:
Factor endowments, economic integration, round-tripping, and inward FDI: evidence from the Baltic economies
Authors:
In the Journal:
Journal of risk and financial management [JRFM]. 2021, 14, 348, p. 1-26
Subject Category:
LT
Įmonės. Bendrovės / Companies. Enterprises; Ekonomikos plėtra / Economic development; Investicijos / Investments; Ekonominė analizė. Prognozavimas / Economic analysis. Forecasting; Estija (Estonia); Latvija (Latvia); Lietuva (Lithuania).
Summary / Abstract:

ENThis paper studies the location choice of foreign multinational firms in the Baltic economies of Estonia, Latvia, and Lithuania using a knowledge-and-physical capital model across 2004–2017. We used the Bayesian model averaging estimation method to investigate a set of possible factors that drive inward FDI. Our analysis demonstrates that factor endowments play a dominant role in driving vertical foreign direct investment, while external market barriers generate “tariff-jumping” FDI. Our analysis quantifies the effects of round-trip FDI, European integration, and external bilateral free trade agreements vis-à-vis inward FDI in the Baltics. Keywords: Baltic economies; foreign direct investment; Bayesian model averaging; factor endowments; round-trip investments. [From the publication]

DOI:
10.3390/jrfm14080348
ISSN:
1911-8074
Subject:
Ekonomika / Economics
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https://www.lituanistika.lt/content/111298
Updated:
2024-10-22 14:25:01
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