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Determinants of german manufacturing direct investment: 1980–1988

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Abstract

Determinants of German Manufacturing Direct Investment: 1980-88.- This paper examines what economic variables best explain the pattern of German foreign direct investment in five manufacturing sectors for the period 1980 through 1988. The statistical model also yields estimates of country-specific fixed effects. The results indicate that host-country size and labor costs may help explain German FDI. The data also suggest that substantial differences among the five sectors exist. The results indicate that geographical proximity to Germany may help systematically in attracting investment.

Zusammenfassung

Bestimmungsgründe der deutschen Direktinvestitionen im Warenproduzierenden Gewerbe 1980-88. - In dem Aufsatz wird untersucht, welche ökonomischen Variablen am besten das Muster der deutschen direkten Auslandsinvestitionen in fünf Industriesektoren zwischen 1980 und 1988 erklären. Das statistische Material liefert auch Schätzungen länderspezifischer Effekte. Die Ergebnisse zeigen, daβ die Gröβe des Gastlandes und Arbeitskosten dazu beitragen können, die deutschen direkten Auslandsinvestitionen zu erklären. Die Daten deuten ferner auf beträchtliche Unterschiede zwischen den fünf Sektoren hin. Auβerdem zeigt sich, daβ die geographische Nähe zu Deutschland systematisch dabei mitwirken kann, deutsche Investoren anzulocken.

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Authors
  1. Michael O. Moore
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Moore, M.O. Determinants of german manufacturing direct investment: 1980–1988. Weltwirtschaftliches Archiv 129, 120–138 (1993). https://doi.org/10.1007/BF02707490

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