Table 1: The timing of the euro effect on FDI ... - José de Sousa

6094. Country-pairs dummies yes yes. Years dummies yes yes. Notes: Standard errors bootstrapped (200 replications) and clustered at the country-pair level in.
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Table 1: The timing of the euro effect on FDI (Supplemental material not intended for publication. Does the single currency affect foreign direct investment? A gravitylike approach. José de Sousa and Julie Lochard. April 2009) Dependent variable Period of estimation Model

ln(Bilateral FDI Outstock) 1992-2005 1982-2005 (1) (2)

Coefficient ln(Parent country GDP) ln(Host country GDP) EU dummy Exchange rate volatility ln(Attractiveness of alternative locations) EMU 1983 dummy EMU 1984 dummy EMU 1985 dummy EMU 1986 dummy EMU 1987 dummy EMU 1988 dummy EMU 1989 dummy EMU 1990 dummy EMU 1991 dummy EMU 1992 dummy EMU 1993 dummy EMU 1994 dummy EMU 1995 dummy EMU 1996 dummy EMU 1997 dummy EMU 1998 dummy EMU 1999 dummy EMU 2000 dummy EMU 2001 dummy EMU 2002 dummy EMU 2003 dummy EMU 2004 dummy EMU 2005 dummy

(s.e)

a

1.232 0.681a -0.043 0.020 -0.497a

(0.185) (0.225) (0.102) (0.016) (0.103)

0.341b 0.414a 0.410a 0.422a 0.462a 0.508a 0.572a 0.537a 0.593a 0.651a 0.637a 0.611a 0.599a

(0.166) (0.138) (0.145) (0.143) (0.138) (0.155) (0.147) (0.162) (0.166) (0.171) (0.166) (0.161) (0.204)

R2 -within # of observations Country-pairs dummies Years dummies

0.505 4306 yes yes

Coefficient a

1.389 0.875a 0.261 0.055 -0.346a 0.348 0.198 0.363 0.170 0.139 0.235 0.380 0.385 0.547c 0.485c 0.595b 0.652b 0.522c 0.570b 0.653b 0.728a 0.773a 0.744a 0.789a 0.844a 0.810a 0.752a 0.807a

(s.e) (0.185) (0.225) (0.102) (0.016) (0.103) (0.287) (0.286) (0.292) (0.306) (0.289) (0.287) (0.282) (0.282) (0.283) (0.277) (0.285) (0.276) (0.271) (0.272) (0.269) (0.275) (0.265) (0.254) (0.266) (0.268) (0.268) (0.273) (0.288)

0.661 6094 yes yes

Notes: Standard errors bootstrapped (200 replications) and clustered at the country-pair level in parentheses. a , b and c denote significance at the 1%, 5% and 10% level respectively. Constant, country-pair and year dummies estimates are not reported. The equation estimated in model (1) P is a variant of equation (??): ln(Fijt ) = β0 + β1 ln(GDPit ) + β2 ln(GDPjt ) + t δ1 tIt EM Uijt + δ2 EUijt + δ3 EXR_V olatijt + β3 ln(Ailt ) + γij + ρt + ijt , where It is a dummy variable which is unity in each successive year t. In model (1), t ∈ [1992, 2005]. In model (2), t ∈ [1982, 2005].

1