A revisit to the outward FDI determinants: further evidence from count panel data models with fixed effects

Abstract

Abstract Given the discrete nature of the outward foreign direct investment (FDI) data, the count data regression models are set up as vehicles for our empirical work. We propose and test various econometric specifications that address the main problems inherent in the traditional Poisson regression. Empirical estimates derived from these models are found quite similar. We find that exchange rate and openness are not as significant factors in attracting FDI as previous studies had portrayed.