An Empirical Examination of the Determinants of Foreign Direct Investment: A Firm-Level Analysis for the Colombian Economy

DOI: https://doi.org/10.12804/rev.econ.rosario.17.01.2014.01

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Publicado: Oct 1, 2014
Número
Vol. 17 Núm. 01 (2014): enero-junio
Sección
Artículos
Palabras clave:
foreign direct investment (FDI), panel probit, database at firm level, Colombia

Contenido principal del artículo

Aarón Garavito
Banco de la República, Colombia
Ana María Iregui
Banco de la República, Colombia
María Teresa Ramírez
Banco de la República, Colombia

Resumen

We use a large firm level data set to investigate the determinants of foreign direct investment
(FDI) in Colombia. We estimate econometric models for the determinants of the probability
that a firm receives FDI, as well as for the factors that help to explain the foreign share in a
firm’s capital. The results show that firms listed on the stock market, involved in foreign trade
activities, and operating in sectors with greater capital intensity are more likely to be recipients
of FDI. Also, the probability of a firm receiving FDI is directly related to its size.

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Garavito, A., Iregui, A. M., & Ramírez, M. T. (2014). An Empirical Examination of the Determinants of Foreign Direct Investment: A Firm-Level Analysis for the Colombian Economy. Revista De Economía Del Rosario, 17(01), 5-31. https://doi.org/10.12804/rev.econ.rosario.17.01.2014.01

Biografía del autor

Aarón Garavito, Banco de la República, Colombia

Senior Economist, Economic Studies Department, Banco de la República

Ana María Iregui, Banco de la República, Colombia

Senior Researcher, Research Unit, Banco de la República

María Teresa Ramírez, Banco de la República, Colombia

Senior Researcher, Research Unit, Banco de la República

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