Foreign direct investment outflows in the forest products industry: the case of the United States and Japan

R.V. Nagubadi; D. Zhang

doi:10.1505/ifor.10.4.632

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Foreign direct investment outflows in the forest products industry: the case of the United States and Japan

Informally Refereed

Authors:

R.V. Nagubadi, D. Zhang

Year:

2008

Type:

Scientific Journal

Station:

Southern Research Station

DOI:

https://doi.org/10.1505/ifor.10.4.632

Source:

International Forestry Review 10(4):632-640

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Abstract

This paper investigates the determinants of foreign direct investment (FDI) outflows from two major forest product importing countries: the U.S. and Japan. Exchange rate, per capita income, cost of capital, and cost of labour in host countries have significant impacts on the FDI outflows from these two countries. A complementary relationship is found between forest products exports and FDI outflows for the forest product importing countries. Market-seeking as well as resource-seeking motives for the FDI outflows from these countries are evident.

Keywords

foreign direct investment, outflows, resource-seeking, market-seeking, forest products industry

Citation

Nagubadi, R.V.; Zhang, D. 2008. Foreign direct investment outflows in the forest products industry: the case of the United States and Japan. International Forestry Review 10(4):632-640.