School of Business and Science

This paper applies the panel fixed effects with vector decomposition esti-mator to three FDI data sets to estimate the impact of time-invariant variables on FDI while including fixed effects. We find that the omission of fixed effects significantly biases the results, leading to contradictory predictions regarding the effect of trade costs and culture across data sets. After eliminating these biases, the differences across data sets largely disappear and many time-invariant variables consistently indicate the importance of vertical FDI. This suggests that some controversies in the literature may be driven by the extent to which unaccounted fixed effects biases vary across different data sets. JEL no. F14, F23

Fixed costs play a crucial role in current models of foreign direct investment (FDI), yet they are almost entirely ignored in empirical treatments of FDI. We fill this gap by using a 1989–2001 panel of FDI flows into Iceland to examine the determinants of fixed costs for multinational firms and how these influence aggregate patterns of investment. Our additions to research in the field include usage of several natural-resource variables, and the analysis of data on initial entry of FDI into a developed country. We use the Heckman two-step procedure, which allows us to account for fixed costs and their impact on estimation.Taken together, we find that the standard OLS approach to the data incorrectly links the quantity of FDI to source-country variables while in fact most of their role is in determining whether FDI takes place at all.

This article was published in the Elsevier Reference Module in Chemistry, Molecular Sciences and Chemical Engineering, and the attached copy is provided by Elsevier for the author's benefit and for the benefit of the author's institution, for non-commercial research and educational use including without limitation use in instruction at your institution, sending it to specific colleagues who you know, and providing a copy to your institution's administrator. All other uses, reproduction and distribution, including without limitation commercial reprints, selling or licensing copies or access, or posting on open internet sites, your personal or institution's website or repository, are prohibited. For exceptions, permission may be sought for such use through Elsevier's permissions site at: http://www.elsevier.com/locate/permissionusematerial Kristjánsdóttir H., and Margeirsson Á. (2014) Geothermal Cost and Investment Factors. In: Reedijk, J. (Ed.) Elsevier Reference Module in Chemistry, Molecular Sciences and Chemical Engineering. Waltham, MA: Elsevier. 21-Jan-15

The river Glerá in Northern-Iceland presents a convenient model for the evaluation of anthropogenic effects on sub-Arctic river microbiota. The river originates in a pristine valley, flows past a landfill site where leachate merges into the river, and subsequently through a small urban area. Our aim was to
characterize the river microbiota in both its pristine and anthropogenically impacted state, particularly focusing on prospective surfactant degraders whose activity in the river water might contribute to the river’s self-purification capacity. We sampled river water and riverbed sediment at 10 sampling sites that spanned the river from its pristine source to the estuary for culturable bacteria and extractable DNA. A few other biotopes in the catchment area were also sampled. A confirmed pure and viable culture collection of 170 isolates was generated and partially analyzed for identification by 16S rRNA gene sequencing, and for biodegradation of selected surfactants as well as glycans, protein and triglyceride. Protein-degrading pseudomonads are strongly represented in the culture collection, many of whom can
also degrade selected surfactants. The collection also contains other members of the Gammaproteobacteria as well as the Alphaproteobacteria, Betaproteobacteria, Bacilli, Actinobacteria, Flavobacteria, and Sphingobacteria. Several isolates of all classes, except the Betaproteobacteria, displayed biodegradative
activity.