Horizontal and vertical FDI: an analysis of technological determinants

Chiara Franco

Risultato della ricerca: Contributo in rivistaArticolo in rivista

Abstract

The study analyses the role played by technological determinants, using the approach of National System of Innovation (NSI), in enhancing or hampering Foreign Direct Investments (FDI) with different motivations, namely horizontal and vertical FDI. The empirical analysis is carried out using data relative to the fi nal destination of sales of US foreign subsidiaries in 42 host countries grouped according to income criteria. A two step empirical strategy is employed: fi rst, we estimate a benchmark model fi nding that technological determinants mainly drive HFDI rather than VFDI. Secondly, applying a dynamic panel data approach we take into account that agglomeration economies may play a role as well more than other FDI determinants. Finally, through a sensitivity analysis we account for different ways of measuring HFDI and VFDI fi nding that measurement issue matters especially to establish which component of NSI results of greater relevance
Lingua originaleEnglish
pagine (da-a)225-254
Numero di pagine30
RivistaInternational Journal of Technology and Globalisation
Volume6
Stato di pubblicazionePubblicato - 2012

Keywords

  • FDI technological determinants
  • horizontal FDI
  • national system of innovation
  • vertical FDI

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