Longitude Matters: Time Zones and the Location of Foreign Direct Investment
نویسندگان
چکیده
Using bilateral Foreign Direct Investment (FDI) data, we find that differences in time zones have a negative and significant effect on the location of FDI. Furthermore, once we control for time zone differences, the effect of distance on FDI is substantially reduced and, in most cases, no longer significant. Time zones also have a negative effect on trade, but this effect is much smaller than that on FDI. Finally, the impact of the time zone effect is increasing over time, suggesting that it is not likely to vanish with the introduction of new information technologies.
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Longitude Matters: Time Zones, the location of FDI, and Trade
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