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Geographic determinants of Australian foreign direct investments

Kishor, Sharma and Yapa, Bandara (2007) Geographic determinants of Australian foreign direct investments. In: International Economic Conference on Trade and Industry (IECTI) 2007, 3 - 5 December 2007, Bayview Hotel Georgetown, Penang. (Unpublished)

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The volume of investment that has flowed from Australia into the outside world, and its implications for economic policy, has attracted substantial policy debate among Australian policy makers, particularly in the context of regionalisation of the world economy. Using hypotheses from investment demand model and new trade theory we investigate if market size, its growth rate, openness, regional economic integration, language and cultural similarity and the availability of knowledge capital have any impact in attracting Australian investments offshore. Our results suggest that countries which are open, have a large domestic market and stable macro-economic environment tend to attract most Australian FDI. Regional integration, and the similarity in language and culture do not have any effect in attracting FDI from Australia. This result has a significant policy implications not only for Australia, but also for other countries who are increasingly engaged in forming trading blocs like Australia-US free trade agreements (AUSFTA).

Item Type: Conference or Workshop Item (Paper)
Additional Information: Organized by Faculty of Economics, Universiti Utara Malaysia
Uncontrolled Keywords: foreign direct investment, openness, regional economic integration, Australia
Subjects: H Social Sciences > HF Commerce
Divisions: College of Arts and Sciences
Depositing User: Mrs. Juwita Johari
Date Deposited: 21 Feb 2011 12:33
Last Modified: 21 Feb 2011 12:33

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