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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R.V. Nagubadi,^1,* D. Zhang^1,*

¹School of Forestry and Wildlife Sciences, Auburn University, AL 36849-5418, USA

^*E-mail: nagubve@auburn.edu and zhangdw@auburn.edu

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.

Citation Download Citation

R.V. Nagubadi and D. Zhang "Foreign Direct Investment Outflows in the Forest Products Industry: The Case of the United States and Japan," International Forestry Review 10(4), 632-640, (1 December 2008). https://doi.org/10.1505/ifor.10.4.632

Published: 1 December 2008

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