SIER Working Paper Series

149 Identifying FDI Types : Watch What They Do, Not What They Say or Look Like


This note compares three different schemes to identify FDI types and documents that correlation among different classification schemes is extremely low. Empirical exercises in line with the proximity-concentration tradeoff hypothesis support the sales information based scheme.
Keywords: FDI types; Horizontal FDI; Vertical FDI; Sales Information based Scheme; Industry Information based Scheme