Does Financial Remoteness Affect Foreign Direct Investment?

Michael Machokoto; Lanre Kassim

Does Financial Remoteness Affect Foreign Direct Investment?

Michael Machokoto, Lanre Kassim

Accounting & Finance

Research output: Contribution to Journal › Article › peer-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 language	English
Pages (from-to)	219-232
Number of pages	14
Journal	Review of Economic Analysis
Volume	11
Issue number	2
Publication status	Published - 12 Jul 2019

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

http://www.rofea.org/index.php?journal=journal&page=article&op=view&path%5B%5D=410Licence: CC BY-NC

Cite this

@article{3c96aa7868354e7eab3daacc6be9450e,

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.",

author = "Michael Machokoto and Lanre Kassim",

year = "2019",

month = jul,

day = "12",

language = "English",

volume = "11",

pages = "219--232",

journal = "Review of Economic Analysis",

issn = "1973-3909",