International investment in insurance services in the US [An article from: Journal of Multinational Financial Management]

This digital document is a journal article from Journal of Multinational Financial Management, published by Elsevier in 2004. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
The purpose of this study is to analyze and discuss the determinants of foreign direct investment (FDI) in insurance services in the US. This study demonstrates that solid economic fundamentals in the host countries are the major factors which attract FDI in insurance services, while the uncertainty of the international exchange market increases the investment risk and reduces foreign investors' willingness to invest. The empirical results of this study indicate that national income (NI), the source countries' insurance market size and financial development (FD) of the host countries contribute to the expansion of FDI in insurance services, while the relatively higher wages and higher cost of capital in the host countries discourage FDI in insurance services. The empirical results also suggest that FDI in insurance services complement FDI in banking as well as total trade in insurance services.