Horizontal and vertical FDI: an analysis of technological determinants
by Chiara Franco
International Journal of Technology and Globalisation (IJTG), Vol. 6, No. 3, 2012

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 final destination of sales of US foreign subsidiaries in 42 host countries grouped according to income criteria. A two step empirical strategy is employed: first, we estimate a benchmark model finding 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 finding that measurement issue matters especially to establish which component of NSI results of greater relevance.

Online publication date: Fri, 31-Oct-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Technology and Globalisation (IJTG):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com