Kalamova, Margarita M.; Konrad, Kai A.
Nation brands and foreign direct investment.
WZB Discussion Paper, SP II 2010-06
Full text not available from 'Open Access LMU'.
We study the explanatory role of fundamentals versus the effects of nation
brands for the size of foreign direct investment (FDI) flows. Using the
EUROSTAT data on FDI flows we find that the Anholt Nation Brands Index has
a significant and strong impact on FDI flows in a multi-variate analysis that is
based on the knowledge-capital (KC) model of FDI. Our results suggest that the
nation brands index accounts for important aspects of FDI decisions that are not
captured in fundamental data which explain FDI in the standard foreign trade Approach to FDI