Kristjánsdóttir, Helga2025-11-142025-11-142012-11-27Kristjánsdóttir, H 2012, 'Substitution between inward and outward foreign direct investment', Public and Municipal Finance, vol. 1, no. 2, pp. 23-28. https://doi.org/10.21511/pmf.01(2).2012.032222-1867441637942a95d762-a4c0-4d29-958b-c5a15a1984b6unpaywall: 10.21511/pmf.01(2).2012.03https://hdl.handle.net/20.500.11815/5733This paper offers a new combination of the knowledge-capital and the gravity models. The model combination is applied to a small, remote country, which allows for testing the corner case. Furthermore, the substitution effects between inward and outward foreign direct investment (FDI) are estimated by the use of a simultaneous equation system, and the estimates indicate that inward and outward FDI can be considered to be substitutes for each other.613669623-28eninfo:eu-repo/semantics/openAccessForeign direct investmentGravity modelKnowledge-capital modelSimultaneous equationsSDG 7 - Affordable and Clean EnergySDG 10 - Reduced InequalitiesSDG 5 - Gender EqualitySDG 13 - Climate ActionSDG 6 - Clean Water and SanitationSDG 8 - Decent Work and Economic GrowthSDG 1 - No PovertySDG 9 - Industry, Innovation, and Infrastructure/dk/atira/pure/researchoutput/researchoutputtypes/contributiontojournal/article10.21511/pmf.01(2).2012.03