Abstract
This chapter empirically documents how population aging affects FDI using data on US inbound and outbound FDI. Notably, the estimates for developed countries conform to the predictions of the theory of Davies and Reed (2008). These predictions anticipate different effects depending on whether one considers the impact of aging on capital versus labour markets and the parent versus the host. In particular, FDI seeks out young workers, locations with higher savings rates, and countries with lower social security taxes.
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© 2014 Ronald B. Davies and Robert R. Reed III
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Davies, R.B., Reed, R.R. (2014). The Effects of Aging on US FDI. In: Brennan, L. (eds) Enacting Globalization. Palgrave Macmillan, London. https://doi.org/10.1057/9781137361943_23
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DOI: https://doi.org/10.1057/9781137361943_23
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-47246-8
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