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This paper tests some of the predictions of recent advances in trade theory that have focused on different trade patterns of firms within the same sector. Helpman, Melitz and Yeaple (2005) develop a model in which innate productivity differences between firms determine the degree of...
Persistent link: https://www.econbiz.de/10010295792
foreign direct investment choice, the export strategy can be rejected although it is dominating the FDI project and although … continuous variables on export and FDI patterns. …
Persistent link: https://www.econbiz.de/10010301792
between export and FDI. The model combines the proximity-concentration trade-off framework with the real option methodology … introduction of productivity growth increases the likeliness of first time market entry through FDI. If the firm is confronted with … uncertain productivity growth, market entry through FDI increases even further. Uncertainty is identified as a compounding force …
Persistent link: https://www.econbiz.de/10010266060
between export and FDI. The model combines the proximity-concentration trade-off framework with the real option methodology … introduction of productivity growth increases the likeliness of first time market entry through FDI. If the firm is confronted with … uncertain productivity growth, market entry through FDI increases even further. Uncertainty is identified as a compounding force …
Persistent link: https://www.econbiz.de/10003883086
This paper examines the long-run relationship between outward foreign direct investment (FDI) and total factor …: (i) outward FDI has, on average, a positive long-run effect on total factor productivity in developing countries, (ii …) increased factor productivity is both consequence and a cause of increased outward FDI, and (iii) there are large differences in …
Persistent link: https://www.econbiz.de/10003947934
many countries. This study presents evidence suggesting that attracting inflows of FDI offers potential for upgrading a … sectors treated by investment promotion agencies as priority in their efforts to attract FDI. The sample covers 116 countries … over the period 1984-2000. The findings are consistent with a positive effect of FDI on unit values of exports in …
Persistent link: https://www.econbiz.de/10003922581
-facto exchange rate regime for FDI flows. We find a strong and significant effect from fixed rates on bilateral FDI flows in … exchange rates on FDI. We provide several possible explanations for this difference. -- Foreign Direct Investment …
Persistent link: https://www.econbiz.de/10003961899
-facto exchange rate regime for FDI flows. We find a strong and significant effect from fixed rates on bilateral FDI flows in … exchange rates on FDI. We provide several possible explanations for this difference. -- Foreign Direct Investment …
Persistent link: https://www.econbiz.de/10003962968
types of FDI: unlike greenfield investment, M&As partly represent a rent accruing to previous owners, and do not necessarily … contribute to expanding the host country's capital stock. The model suggests that greenfield FDI has a stronger impact on growth … than M&A sales. This hypothesis is supported by our empirical results, which show that greenfield FDI enhances growth …
Persistent link: https://www.econbiz.de/10009376718
Investment (FDI). The conventional proximity-concentration theory suggests that FDI substitutes for trade if distance between … empirically the effect of different dimensions of distance on the choice between exports and FDI. We find that different … dimensions of distance affect exports and FDI differently. There is clear evidence of a proximity-concentration trade-off in …
Persistent link: https://www.econbiz.de/10011378320