What Drives Sector Allocation of Foreign Direct Investment in Iceland?

The objective of this paper is to examine how the driving forces of investment in a small country like Iceland differ from those in larger countries. Special attention is given to the dominating investment sector in Iceland due to its resource intensity. Estimates are based on 1989-1999 panel data o...

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Bibliographic Details
Main Author: Kristjánsdóttir, Helga
Format: Report
Language:English
Published: Copenhagen: University of Copenhagen, Economic Policy Research Unit (EPRU) 2005
Subjects:
F21
F23
Online Access:http://hdl.handle.net/10419/82023
Description
Summary:The objective of this paper is to examine how the driving forces of investment in a small country like Iceland differ from those in larger countries. Special attention is given to the dominating investment sector in Iceland due to its resource intensity. Estimates are based on 1989-1999 panel data on foreign direct investment in various sectors. This may help explain why the investment pattern in Iceland differs from the general case.