TY - JOUR
T1 - Estimating regional trade agreement effects on FDI in an interdependent world
AU - Baltagi, Badi H.
AU - Egger, Peter
AU - Pfaffermayr, Michael
N1 - Funding Information:
Peter Egger gratefully acknowledges financial support from the Leibniz Foundation through the project grant for How to Construct Europe . Michael Pfaffermayr gratefully acknowledges financial support from the Austrian National Bank, Jubilaeumsfond grant Nr. 10057. The authors would like to thank the editors and three referees for their helpful comments and suggestions. Earlier versions of this paper were presented at a conference entitled: “The Use of Econometrics in Informing Public Policy Makers,” held at the James A. Baker III Institute for public policy at Rice University, April 22–23, 2006; the Canadian Economics Association meeting in Montreal, May 25–28, 2006; the International Workshop on Spatial Econometrics and Statistics held at University LUISS “Guido Carli”, Rome, Italy, May 25–27, 2006; and the 13th International Conference on Panel Data held in Cambridge, England, July 7–9, 2006.
PY - 2008/7
Y1 - 2008/7
N2 - Recent research on trade and multinationals highlights that multinational firms' integration strategies are complex and the degree of vertical integration varies in a multilateral world with many possible locations of activity. In particular, multinationals control a large fraction of trade within the block of developed countries. The most important regional trade agreements (RTAs) are signed between members of the very same block of economies. This gives rise to the question asked in the present paper: what is the impact of RTAs on FDI in an interdependent world? Recent spatial HAC estimation techniques are applied to both estimation and testing.
AB - Recent research on trade and multinationals highlights that multinational firms' integration strategies are complex and the degree of vertical integration varies in a multilateral world with many possible locations of activity. In particular, multinationals control a large fraction of trade within the block of developed countries. The most important regional trade agreements (RTAs) are signed between members of the very same block of economies. This gives rise to the question asked in the present paper: what is the impact of RTAs on FDI in an interdependent world? Recent spatial HAC estimation techniques are applied to both estimation and testing.
KW - Generalized moments (GM) estimators
KW - Multinational firms
KW - Regional trade agreements
KW - Spatial econometrics
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U2 - 10.1016/j.jeconom.2008.05.017
DO - 10.1016/j.jeconom.2008.05.017
M3 - Article
AN - SCOPUS:50049126904
SN - 0304-4076
VL - 145
SP - 194
EP - 208
JO - Journal of Econometrics
JF - Journal of Econometrics
IS - 1-2
ER -