Does Financial Remoteness Affect Foreign Direct Investment?

Michael Machokoto, Lanre Kassim

Research output: Contribution to JournalArticlepeer-review


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
Pages (from-to)219-232
Number of pages14
JournalReview of Economic Analysis
Issue number2
Publication statusPublished - 12 Jul 2019


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