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We model subsidy competition for a foreign MNC's investment in two trading partners. Taking into account acquisitions … as an alternative investment mode weakens the case for subsidising greenfield investment. Competition between countries …
Persistent link: https://www.econbiz.de/10012721192
foreign market. Two alternative entry modes for a foreign direct investment are considered: Greenfield investment versus … acquisition. We find that with quantity competition a spillover makes acquisitions less attractive, while with price competition …
Persistent link: https://www.econbiz.de/10010440961
When countries compete for the location of a new multinational plant they need to be aware of the profit shifting opportunities this new plant creates for the global multinational firm. By modelling explicitly the multinational's intra-firm transactions, we show that the home market advantage...
Persistent link: https://www.econbiz.de/10013029510
This paper develops a model of a monopolistically competitive industry with extensive and intensive business investment … and shows how these margins respond to changes in average and marginal corporate tax rates. Intensive investment refers to … the size of a firm's capital stock. Extensive investment refers to the firm's production location and reflects the trade …
Persistent link: https://www.econbiz.de/10011347058
We consider the plant location decision of a multinational corporation (MNC), which has the option to invest in a more or in a less technologically lagging country, and which aims to use its foreign plant as an export-platform. We show that the plant location decision of the MNC depends on...
Persistent link: https://www.econbiz.de/10012732577
This paper develops a model of a monopolistically competitive industry with extensive and intensive business investment … and shows how these margins respond to changes in average and marginal corporate tax rates. Intensive investment refers to … the size of a firm's capital stock. Extensive investment refers to the firm's production location and reflects the trade …
Persistent link: https://www.econbiz.de/10012709700
We develop an assignment theory to analyze the volume and composition of foreign direct investment (FDI). Firms conduct … FDI by either engaging in greenfield investment or in cross-border acquisitions. Cross-border acquisitions involve firms … these modes varies with firm and country characteristics. Firms engaging in greenfield investment are systematically more …
Persistent link: https://www.econbiz.de/10014028512
Persistent link: https://www.econbiz.de/10014439395
Persistent link: https://www.econbiz.de/10008656522
This paper aims to shed light on firm specific drivers that lead firms to internationalise their innovation activities. The paper draws a comprehensive picture of driving forces by including firm capabilities, characteristics of the firm’s competitive environment and the influence of...
Persistent link: https://www.econbiz.de/10003888033