공통성, 유사성 그리고 양 국가 간 FDI 흐름

Commonality, Similarity and Bilateral FDI Flows: Evidence from Panel Data

With recently compiled UNCTAD data on bilateral FDI flows, this study investigated the determinants of bilateral FDI flows between 205 home countries and same number of host countries over the period 2002 to 2012. Using panel tobit random effect model, this study investigated the common and similar factors between countries that may play an important role in determining dyadic FDI flows. Also, a range of factors including distance, market size, and degree of globalization were examined. Empirical results show that the commonality-related factors, such as common language and common legal origin have a positive effect on dyadic FDI flows. Also, religious, cultural, economic and political similarities between home and host country have significantly positive effects on bilateral FDI flows. For control variables, geographic distance between countries and foreign exchange rate in home country have a negative effects on dyadic FDI flows. But the market size and the degree of globalization of home and host country have significantly positive effects on bilateral FDI flows.