Publication

Non-traditional source countries of FDI play an increasingly important role, notably in developing host countries. This raises the question of whether the determinants of FDI differ systematically between traditional and non-traditional source countries. The authors of this working paper perform Logit and Poisson Pseudo Maximum Likelihood estimations drawing on UNCTAD’s database on bilateral FDI flows, including various emerging and developing countries as sources of FDI outflows. They find that economic geography variables are more relevant for FDI from non-traditional sources, while non-traditional investors appear to be as risk adverse as traditional investors.