{"id":1100,"date":"2023-02-13T16:19:15","date_gmt":"2023-02-13T16:19:15","guid":{"rendered":"https:\/\/www.fiw.ac.at\/publications\/bilateral-fdi-potentias-for-austria\/"},"modified":"2023-02-13T16:19:15","modified_gmt":"2023-02-13T16:19:15","slug":"bilateral-fdi-potentias-for-austria","status":"publish","type":"publication","link":"https:\/\/www.fiw.ac.at\/en\/publications\/bilateral-fdi-potentias-for-austria\/","title":{"rendered":"Bilateral FDI Potentias for Austria"},"content":{"rendered":"\nTrade economists have for long considered  gravity models to estimate unexhausted potentials for bilateral trade. Similar to the discrepancy between &quot;normal&quot; and &quot;actual&quot; bilateral trade, one may ask the question about the difference between &quot;normal&quot; and actual bilateral multinational activity. However, with multinational activity, zero bilateral data and heteroscedasticity are very import ant, even more so than with trade data.\nTherefore, this paper suggests using generalize d linear rather than log-linear models to specify &quot;normal&quot; FDI and obtain estimates of unexhausted FDI potentials. I use panel data on Austria\u2019s bilateral multinational activity\n across 25 countries and 7 country-blocs, 4 sectors and 13 years to illustrate the disadvantage of log-linear model estimation at quasi-maximum likelihood estimation.\n\n","protected":false},"featured_media":0,"menu_order":0,"template":"","jelcode":[61,86,51,34],"keyword":[130,229,228,230],"class_list":["post-1100","publication","type-publication","status-publish","hentry","jelcode-f14","jelcode-f15","jelcode-f21","jelcode-f23","keyword-foreign-direct-investment","keyword-gravity-model","keyword-multinational-activity","keyword-trade-potentials"],"acf":{"year":2008,"month":6,"day":"","volume":"I","number":"011","pages":29,"reviewed":"0","citeid":"FIW_RR_08-011","fiwseries":"FIW Studien","event":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bilateral FDI Potentias for Austria - FIW<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fiw.ac.at\/en\/publications\/bilateral-fdi-potentias-for-austria\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bilateral FDI Potentias for Austria - FIW\" \/>\n<meta property=\"og:description\" content=\"Trade economists have for long considered gravity models to estimate unexhausted potentials for bilateral trade. Similar to the discrepancy between &quot;normal&quot; and &quot;actual&quot; bilateral trade, one may ask the question about the difference between &quot;normal&quot; and actual bilateral multinational activity. However, with multinational activity, zero bilateral data and heteroscedasticity are very import ant, even more [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.fiw.ac.at\/en\/publications\/bilateral-fdi-potentias-for-austria\/\" \/>\n<meta property=\"og:site_name\" content=\"FIW\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.fiw.ac.at\/wp-content\/uploads\/2023\/03\/wifo_fiw_logo_short_rgb.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"843\" \/>\n\t<meta property=\"og:image:height\" content=\"293\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@CentreFiw\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.fiw.ac.at\/en\/publications\/bilateral-fdi-potentias-for-austria\/\",\"url\":\"https:\/\/www.fiw.ac.at\/en\/publications\/bilateral-fdi-potentias-for-austria\/\",\"name\":\"Bilateral FDI Potentias for Austria - FIW\",\"isPartOf\":{\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#website\"},\"datePublished\":\"2023-02-13T16:19:15+00:00\",\"dateModified\":\"2023-02-13T16:19:15+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.fiw.ac.at\/en\/publications\/bilateral-fdi-potentias-for-austria\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.fiw.ac.at\/en\/publications\/bilateral-fdi-potentias-for-austria\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.fiw.ac.at\/en\/publications\/bilateral-fdi-potentias-for-austria\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Startseite\",\"item\":\"https:\/\/www.fiw.ac.at\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Publications\",\"item\":\"https:\/\/www.fiw.ac.at\/en\/publications\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Bilateral FDI Potentias for Austria\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#website\",\"url\":\"https:\/\/www.fiw.ac.at\/en\/\",\"name\":\"FIW\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.fiw.ac.at\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#organization\",\"name\":\"FIW\",\"url\":\"https:\/\/www.fiw.ac.at\/en\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.fiw.ac.at\/wp-content\/uploads\/2023\/03\/wifo_fiw_logo_kugel_rgb.png\",\"contentUrl\":\"https:\/\/www.fiw.ac.at\/wp-content\/uploads\/2023\/03\/wifo_fiw_logo_kugel_rgb.png\",\"width\":843,\"height\":843,\"caption\":\"FIW\"},\"image\":{\"@id\":\"https:\/\/www.fiw.ac.at\/en\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/x.com\/CentreFiw\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Bilateral FDI Potentias for Austria - FIW","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.fiw.ac.at\/en\/publications\/bilateral-fdi-potentias-for-austria\/","og_locale":"en_US","og_type":"article","og_title":"Bilateral FDI Potentias for Austria - FIW","og_description":"Trade economists have for long considered gravity models to estimate unexhausted potentials for bilateral trade. 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