Oligopolistic Reactions in European and Canadian Direct Investment in the United States

Industrial concentration seems to have stimulated the initial phase of recent direct foreign investment in the United States by European and Canadian firms. Increased industrial concentration seems to cause a clumping of direct foreign investment entries after investment by the leading firm in the industry has occurred. This research defines and examines the functional relationship between entry concentration and industrial concentration in European and Canadian industries which have made investments in the United States since World War II.© 1976 JIBS. Journal of International Business Studies (1976) 7, 43–56