• Medientyp: E-Book
  • Titel: Invest in Friends or Foreigners? The Role of Social Connectedness in Foreign Direct Investment
  • Beteiligte: Dornseifer, Felix [VerfasserIn]; Rehbein, Oliver [VerfasserIn]
  • Erschienen: [S.l.]: SSRN, 2022
  • Umfang: 1 Online-Ressource (74 p)
  • Sprache: Englisch
  • DOI: 10.2139/ssrn.4304968
  • Identifikator:
  • Schlagwörter: FDI ; investment ; social connectedness ; information asymmetries ; institutions ; uncertainty
  • Entstehung:
  • Anmerkungen: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 16, 2022 erstellt
  • Beschreibung: Using Facebook friendship links as a proxy for social ties for a large set of country pairs across the world, this paper shows that cross-country social connectedness is an important determinant of foreign direct investment (FDI). We find that social connections can account for a significant share of more traditional cross-country determinants such as distance. Importantly, we show that social connections can help to overcome three different types of investment hurdles: information asymmetries, bad institutions, and global (macroeconomic) uncertainty. To strengthen identification, we exploit migration and genetic distance as instruments
  • Zugangsstatus: Freier Zugang