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Recent evidences show the co-existence of lower trade cost and higher amount of foreign direct investment (FDI), which cannot be explained by the traditional "proximity-concentration trade-off". We show that if both the home and the host country markets are important to the foreign firm, lower...
Persistent link: https://www.econbiz.de/10014055480
can protect their technology by exporting or risk spillovers by undertaking FDI to avoid tariffs. A stringent IPR regime …
Persistent link: https://www.econbiz.de/10014067223
It is often argued that multinationals are reluctant to transfer technology due to the fear of spillovers. We show that … may agree to enter a joint venture even though this gives rise to spillovers. Surprisingly, we find that a joint venture … is sometimes not in the interest of a host country, despite the prospect of spillovers. …
Persistent link: https://www.econbiz.de/10005835219
I analyze the welfare implications of protecting intellectual property rights (IPR) in developing countries through its impact on innovation, market structure, and technology transfer. FDI, tariffs, and joint ventures (JV) are introduced to the strategic IPR literature. In a North-South trade...
Persistent link: https://www.econbiz.de/10005686054
We consider the possibility of forming a joint venture (JV) between a local firm and a foreign multinational in a situation when there is no current gain from such an arrangement. In the presence of policy uncertainty and threat of entry, a current period formation of JV with the multinational,...
Persistent link: https://www.econbiz.de/10005416671
This paper seeks to uncover why the pattern of equilibria in sequential merger games of a certain type is similar across a fairly wide class of models much studied in the literature. By developing general conditions characterising each element of the set of possible equilibria, I show that the...
Persistent link: https://www.econbiz.de/10010745143
Global FDI activities are dominated by cross border acquisitions, especially between industrialized countries. In small industrialized countries, there is a growing concern of losing leading technological firms to large foreign companies through acquisitions. In this paper, we identify under...
Persistent link: https://www.econbiz.de/10010597727
can protect their technology by exporting or risk spillovers by undertaking FDI to avoid tariffs. A stringent IPR regime …
Persistent link: https://www.econbiz.de/10005230932
structure in an international joint venture. In contrast to existing arguments we show that spillovers must not always have … venture is mutually beneficial. Surprisingly, however, we find that despite the prospect of spillovers a joint venture is …
Persistent link: https://www.econbiz.de/10010427387
This paper studies the effect of technology spillovers on the entry decision of a multinational enterprise into a … acquisitions become more attractive. Asymmetric information about potential spillovers always reduces the number of acquisitions …
Persistent link: https://www.econbiz.de/10014108877