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Foreign direct investment outflows in the forest products industry: the case of the United States and Japan

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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.
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Keywords: foreign direct investment; forest products industry; market-seeking; outflows; resource-seeking

Document Type: Research Article

Affiliations: School of Forestry and Wildlife Sciences, Auburn University, AL 36849-5418, USA.

Publication date: December 1, 2008

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