US fdi flows to ASEAN-5: Do geographic neighbors matter

• Francis Kemegue ^[1] ; Ramesh Mohan ^[1]
  1. [1] Bryant University

     Bryant University

     Town of Smithfield, Estados Unidos

     
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 9, Nº. 1, 2009, págs. 107-122
• Idioma: inglés
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• Resumen

  • This paper investigates the possibility of interdependence between flows of US FDI to the ASEAN region. The study incorporates information asymmetry into an FDI model to examine the influence of geographic neighbors on new flows of FDI from the United States. Spillovers are modeled using the cost structure of a multinational investing in a region where US firms are already present. The results show that there are negative spillovers of US FDI in the ASEAN region affecting mostly the non-manufacturing sector.