Foreign Direct Investment, Input Prices, and Host Country Welfare

Foreign Direct Investment, Input Prices, and Host Country Welfare PDF Author: Kuo-Feng Kao
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
This paper analyzes a multinational firm's foreign direct investment decision, through either greenfield investment or cross-border merger and acquisition, into a host country with an input monopoly that adopts either uniform pricing or discriminatory pricing. The optimal foreign entry mode could differ under each pricing policy. Under Cournot competition, firms' technological gap and the initial local market structure are critical to the choice of foreign entry mode, whereas product substitutability is important under Bertrand competition. In the presence of foreign entry, this paper also examines the welfare effects of input price discrimination for the host country.

Foreign Direct Investment, Input Prices, and Host Country Welfare

Foreign Direct Investment, Input Prices, and Host Country Welfare PDF Author: Kuo-Feng Kao
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
This paper analyzes a multinational firm's foreign direct investment decision, through either greenfield investment or cross-border merger and acquisition, into a host country with an input monopoly that adopts either uniform pricing or discriminatory pricing. The optimal foreign entry mode could differ under each pricing policy. Under Cournot competition, firms' technological gap and the initial local market structure are critical to the choice of foreign entry mode, whereas product substitutability is important under Bertrand competition. In the presence of foreign entry, this paper also examines the welfare effects of input price discrimination for the host country.

Foreign Direct Investment to Developing Countries: Technological Externalities and Welfare Gains

Foreign Direct Investment to Developing Countries: Technological Externalities and Welfare Gains PDF Author: Sebastian Rausch
Publisher: GRIN Verlag
ISBN: 3638347575
Category : Business & Economics
Languages : en
Pages : 104

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Book Description
Diploma Thesis from the year 2005 in the subject Economics - International Economic Relations, grade: 1,0, University of Bonn, language: English, abstract: This work analyzes under what conditions Foreign Direct Investment (FDI) flows to developing countries occur and what host country characteristics determine the extent of benefits associated with FDI. Using a numerical two-country general equilibrium model in which (vertical) FDI arise endogenously I compare welfare situations for the developing country before and after FDI liberalization. I specifically focus on the welfare potential of technological externalities arising from the activity of MNEs. These spillover effects stemming from the transfer of foreign technology and skills to local industries are shown to be welfare-improving if the host country, in particular local firms, possess the ability to absorb benefits from FDI.

Firm Heterogeneity, Foreign Direct Investment and the Host-country Welfare

Firm Heterogeneity, Foreign Direct Investment and the Host-country Welfare PDF Author: Arijit Mukherjee
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Foreign Direct Investment for Development Maximising benefits, minimising costs

Foreign Direct Investment for Development Maximising benefits, minimising costs PDF Author: OECD
Publisher: OECD Publishing
ISBN: 9264199284
Category :
Languages : en
Pages : 225

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Book Description
Provides a comprehensive review of the issues related to the impact of FDI on development as well as to the policies needed to maximise the benefits.

Mode of Foreign Entry, Technology Transfer, and FDI Policy

Mode of Foreign Entry, Technology Transfer, and FDI Policy PDF Author: Aaditya Mattoo
Publisher: World Bank Publications
ISBN:
Category : Business enterprises, Foreign
Languages : en
Pages : 42

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Book Description
When technology transfer is costly, a foreign firm and host country government may differ in their preferences over direct entry and acquisition. Government intervention could help induce the socially preferred choice.

Import-substituting Direct Foreign Investment and Host Country Economic Welfare

Import-substituting Direct Foreign Investment and Host Country Economic Welfare PDF Author: Sean Nolan
Publisher:
ISBN:
Category : Import substitution
Languages : en
Pages : 48

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Book Description


Privatisation, Strategic Foreign Direct Investment and the Host Country Welfare

Privatisation, Strategic Foreign Direct Investment and the Host Country Welfare PDF Author: Arijit Mukherjee
Publisher:
ISBN:
Category : Investments, Foreign
Languages : en
Pages :

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Book Description


Foreign Direct Investment Under R&D Competition

Foreign Direct Investment Under R&D Competition PDF Author: Arijit Mukherjee
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
We consider the preferences of a foreign firm and a welfare maximizing host country government for foreign direct investment through direct entry and acquisition in presence of innovation by the firms. We find that relatively superior technology is always used under acquisition. Though profits are higher under acquisition, consumers are better off under direct entry, which creates a tension on the host country welfare. The host country welfare is higher under acquisition if the bargaining power of the foreign firm and the slope of the marginal cost of R&D are sufficiently low. Otherwise, the host country welfare is higher under direct entry.

Foreign Direct Investment in Services and the Domestic Market for Expertise

Foreign Direct Investment in Services and the Domestic Market for Expertise PDF Author: James R. Markusen
Publisher: World Bank Publications
ISBN:
Category : Acuerdos comerciales
Languages : en
Pages : 52

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Book Description
How important to welfare and growth in developing countries are restraints on foreign providers of producer services? Limiting such services not only may limit growth but may hurt some of the very people - domestic skilled workers in such service sectors - those restraints are designed to protect.

Foreign Direct Investment

Foreign Direct Investment PDF Author: A. E. Safarian
Publisher: IRPP
ISBN: 9780886450182
Category : Business & Economics
Languages : en
Pages : 104

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Book Description
From the back cover: Foreign direct investment and multinational enterprises play a major but controversial role in Canada. Why do we see multinational enterprises use the subsidiary to transfer their techniques and products rather than national enterprises selling their products to foreigners through markets? What impacts do multinational enterprises have on the economic growth, balance of payments, industrial performance, and national independence of the home country? Professor Safarian addresses these questions, and others, as he surveys the research of Canadian economists in this field. Although economists have recently produced more and better analysis of foreign direct investment, the author maintains that additional research is required. The complex macro- and micro-economic impacts require more precise theoretical and empirical study....Sarafin concludes that economists and other social scientists must close the gaps in understanding foreign direct investment.