Does Financial Remoteness Affect Foreign Direct Investment?

Michael Machokoto, Lanre Kassim

Research output: Contribution to journalArticleResearchpeer-review

Abstract

We examine the effect of financial remoteness on foreign direct investment(FDI) using a sample of 173 countries over the period 1970-2015. Our re-sults show that financial remoteness has a significant negative effect onFDI, which suggests that proximity to major financial centres is an im-portant factor in deciding on foreign investments. Our results are robustto alternative measures of financial remoteness and controlling for otherdeterminants of FDI from the literature.
Original languageEnglish
JournalReview of Economic Analysis
Publication statusAccepted/In press - 11 Apr 2019

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Foreign direct investment
Proximity
Factors
Foreign investment
Financial centres

Cite this

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title = "Does Financial Remoteness Affect Foreign Direct Investment?",
abstract = "We examine the effect of financial remoteness on foreign direct investment(FDI) using a sample of 173 countries over the period 1970-2015. Our re-sults show that financial remoteness has a significant negative effect onFDI, which suggests that proximity to major financial centres is an im-portant factor in deciding on foreign investments. Our results are robustto alternative measures of financial remoteness and controlling for otherdeterminants of FDI from the literature.",
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Does Financial Remoteness Affect Foreign Direct Investment? / Machokoto, Michael; Kassim, Lanre.

In: Review of Economic Analysis, 11.04.2019.

Research output: Contribution to journalArticleResearchpeer-review

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AU - Kassim, Lanre

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AB - We examine the effect of financial remoteness on foreign direct investment(FDI) using a sample of 173 countries over the period 1970-2015. Our re-sults show that financial remoteness has a significant negative effect onFDI, which suggests that proximity to major financial centres is an im-portant factor in deciding on foreign investments. Our results are robustto alternative measures of financial remoteness and controlling for otherdeterminants of FDI from the literature.

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