Host Country Degree of Rurality and the Location Choice of Multinational Enterprises: A Panel Model Analysis
Journal of Economics, Management and Trade · pp. 42–60 · Published 28 Aug 2011
Abstract
In this paper, we build up the literature by introducing host-country degree of rurality as a factor influencing Multinational Enterprises’ (MNEs) location choice measured by foreign direct investment (FDI) inflows. Based on 1999-2007 panel data of 172 countries, we show that host-country degree of rurality has a negative relationship with the location choice of multinationals. The effect is more profound in low-income host countries than in high-income host countries. We also confirm that the control variables, such as host-country market size, trade openness, labor costs, and labor skills are positively related to FDI inflows while interest rates and expected currency depreciation are negatively related. Moreover, results of pair-wise Granger causality tests show FDI has a feedback relationship with per capital GDP and exchange rate movements. Impulse response test results render key insights into FDI linkages and associated policy implications.
Cited by 0
No indexed citations yet.
Related research
- Impacts of Climate Factors Influencing Rice Production in Bangladesh — shares topic coverage
- Exchange Rate Volatility and Growth Dynamics: Evidence from Selected Sub-Saharan African Countries — shares topic coverage
- The Impact of Volatility of Oil Price on the Economic Growth in Sub-Saharan Africa — shares topic coverage
- The Effect of Unemployment on Crime in Nigeria: A Panel Data Analysis — shares topic coverage
- Foreign Capital and Poverty Reduction in West Africa — shares topic coverage
Article metrics
Real usage data collected on this platform.
0
Page views
0
PDF downloads
0
Outbound clicks
0
Citations
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
No views recorded yet.
Traffic sources
Referring site, by host.
No traffic recorded yet.
Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.