Egger, Peter; Pfaffermayr, Michael - 2001
This paper analyzes the effects of distance as a common determinant of exports and FDI in a three factors New Trade … Theory model assuming that distance affects both pure trade costs and plant set-up costs. Exports and FDI are not necessarily … most appropriately analyzed in a Hausman-Taylor SUR model. In our application, outward FDI is negatively affected by …