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The Role of Home Bias within Foreign Direct Investments
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2015 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This paper evaluates and compares the effect of the two home bias variables common language and legal system within vertical and horizontal investments, respectively. Using a cross-sectional method, the results of the study imply that the home bias effect could have more importance within horizontal investments. These findings suggest that strategies promoting a separate treatment of home bias within horizontal and vertical investments could serve to increase the understanding of the expressions of the home bias phenomenon and further build strategies for export counselling.

Place, publisher, year, edition, pages
Keyword [en]
horizontal foreign direct investments, vertical foreign direct investments, home bias, gravity equation, economic theory
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URN: urn:nbn:se:uu:diva-247307OAI: oai:DiVA.org:uu-247307DiVA: diva2:795777
Available from: 2015-03-17 Created: 2015-03-17 Last updated: 2015-03-17Bibliographically approved

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