Mattoo, Aaditya; Olarreaga, Marcelo; Saggi, Kamal - C.E.P.R. Discussion Papers - 2001
Foreign direct investment (FDI) can take place either through the direct entry of foreign firms or the acquisition of existing domestic firms. The preferences of a foreign firm and the host country government over these two modes of FDI are examined in the presence of costly technology transfer....