Longitude matters: Time zones and the location of foreign direct investment

• 成果类型: Article
• 署名作者: Stein, Ernesto; Daude, Christian
• 署名单位: Inter-American Development Bank; University System of Maryland; University of Maryland College Park
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2006.01.003
• 发表日期: 2007
• 页码: 96-112
• 关键词: foreign direct investment; transaction costs; time zones

摘要

Using bilateral foreign direct investment (FDI) data, we find that differences in time zones have a negative and significant effect on the location of FDI. We show that this finding is robust across different specifications, estimation methods and proxies for time zone differences. Time zones also have a negative effect on trade, but this effect is smaller than that on FDI. Finally, the impact of the time zone effect has increased over time, suggesting that it is not likely to vanish with the introduction of new information technologies. (c) 2006 Elsevier B.V. All rights reserved.