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Applied Economics Letters
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A revisit to the outward FDI determinants: further
evidence from count panel data models with fixed
effects
Song Zan Chiou Wei
a& Zhen Zhu
b aGraduate Institute of Economics, Nan Hua University , 32, Chung Keng Li, Dalin, Chiayi
622, Taiwan
b
Department of Economics , College of Business, University of Central Oklahoma , Edmond,
OK 43034, USA
Published online: 11 Sep 2007.
To cite this article: Song Zan Chiou Wei & Zhen Zhu (2007) A revisit to the outward FDI determinants: further evidence from
count panel data models with fixed effects, Applied Economics Letters, 14:11, 809-812, DOI:
10.1080/13504850600689923
To link to this article:
http://dx.doi.org/10.1080/13504850600689923
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in those countries with high unemployment rate. Evidently, the more labour that is available locally, the more attractive the country is to foreign investors.
IV. Concluding Remarks
FDI data are often in discrete count form, but consideration for count data models is sparse. This article reinvestigates the determinants of outward FDI using count panel data models given there are many zero observations in the sample. Results from three econometric model specifications yield similar results and substantiate the important role played by the size of the domestic market. However, the findings of this article suggests that the impacts of the exchange rate and open climate relative to local economies on outward FDI might be overstated.
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