2016

Aggregation Issues of Foreign Direct Investment Estimation in an Interdependent World

Reprint No. 2016:62

Author(s): Helen Naughton, Pehr-Johan Norbäck and Ayça Tekin‐KoruYear: 2016 Title: World Economy Volume (No.): 39 (12) Pages: 2046–2073
Online article (restrictions may apply)


This paper attempts to understand foreign direct investment (FDI) heterogeneity and offers useful insights about aggregation issues in FDI estimations by carrying out a spatial econometric analysis using affiliate-level data on sales activities of Swedish multinational corporations around the globe. The results indicate that the multilayered nature of aggregation in FDI matters for empirical analysis. Affiliate-level host-country and third-country sales activity provides evidence of a negative spatial lag or substitution of FDI in space, broadly supporting the export-platform theory. For exports back to Sweden, we find a positive spatial lag suggesting agglomeration of production activities and vertical specialisation. The sequential aggregation from affiliate level to firm and country level provides evidence of a severe scale problem particularly in export-platform FDI. This aggregation bias is likely present in many of the country-level analyses in previous literature.


Reference:
Naughton, Helen, Pehr‐Johan Norbäck och Ayça Tekin‐Koru (2016), "Aggregation Issues of Foreign Direct Investment Estimation in an Interdependent World". World Economy 39(12), 2046–2073.

Pehr-Johan Norbäck

Contact

Ph: +46 8 665 4522
Mob: +46 73 574 3379
pehr-johan.norback@if...

Global index of the sharing economy

Timbro SEI

2018 Bergh Funcke Wernberg - Timbro Sharing Economy Index-1fHemsidan.jpg

Andreas Bergh, IFN and Lund University, is one of the authors of this book. The Timbro Sharing Economy Index is the first global index of the sharing economy. The index has been compiled using traffic volume data and scraped data, and provides a unique insight into the driving factors behind the peer-to-peer economy.

About the book

Events

Seminars organized by IFN

 

To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

Research Institute of Industrial Economics, Grevgatan 34 - 2 fl, Box 55665, SE-102 15 Stockholm, Sweden | Phone: +46-(0)8-665 45 00 | info@ifn.se