{"id":68539,"date":"2023-12-01T23:07:42","date_gmt":"2023-12-01T22:07:42","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/distance-trade-and-fdi-a-hausman-taylor-sur-approach\/"},"modified":"2025-10-22T22:24:27","modified_gmt":"2025-10-22T20:24:27","slug":"distance-trade-and-fdi-a-hausman-taylor-sur-approach","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/68539\/","title":{"rendered":"Distance, Trade and FDI: A Hausman-Taylor SUR Approach"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-68539","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"This paper analyses the effects of distance as a common determinant of exports and FDI in a three-factor New Trade Theory model, assuming that distance affects both pure trade costs and plant set-up costs. Exports and FDI are not necessarily substitutes with respect to distance, since the predicted impact depends on its importance for fixed plant set-up costs relative to transportation costs and on the relative importance of vertical MNEs. For the empirical specification, we suggest that the impact of time-invariant variables such as distance is most appropriately analysed in a Hausman-Taylor SUR model. We apply our model to industry-level data of bilateral outward FDI stocks and exports of the USA and Germany.","onlinedate":"2004-03-11 01:00:00","lang":"English","publication_series":"","publication_date":"20040311","publication_date_year":"","publication_date_full":true,"publication_num_pages":"","keywords":"[]","jelcodes":"[]","related_publications":"[]","pdf":null,"zip":null,"link":"https:\/\/doi.org\/10.1002\/jae.721","monthly_report":false,"monthly_report_main":false,"monthly_report_volume":"19","monthly_report_pages":"227-246","monthly_report_pages_sort":"227","issue":"2","journal":"Journal of Applied Econometrics","publisher":"","invisible":false,"external":true,"embargo_date":null,"types":[83083],"research_groups":[3491],"collaboration":"","persons":[3574,3785],"persons_data":"[{\"personId\":3574,\"personName\":\"Peter Egger\",\"organisationNames\":[]},{\"personId\":3785,\"personName\":\"Michael Pfaffermayr\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - 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