Competing-Destinations Gravity Model: An Application to the Geographic Distribution of FDI

Mello-Sampayo, Felipa de

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@article{ Mello-Sampayo2009,
 title = {Competing-Destinations Gravity Model: An Application to the Geographic Distribution of FDI},
 author = {Mello-Sampayo, Felipa de},
 journal = {Applied Economics},
 number = {17},
 pages = {2237-2253},
 volume = {41},
 year = {2009},
 doi = {https://doi.org/10.1080/00036840701765346},
 urn = {https://nbn-resolving.org/urn:nbn:de:0168-ssoar-241796},
 abstract = {The competing-destinations formulation of the gravity model ensues from the fact that unlike the classical version, this approach explicitly acknowledges the interdependence of the flows between a set of alternative locations, i.e. countries-recipients are competing for FDI. This paper examines empirically a range of theoretical hypotheses about the determinants of FDI location in a panel data regression framework. The results of the estimation of a gravity model lend support to the proximity-concentration and internalization hypotheses. Also, the fact that FDI has been found to be decreasing in the competition posed by alternative locations is suggestive of the superiority of the competing-destinations version of the gravity equation over its classical formulation.},
}