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Trade, foreign direct investment or acquisition : optimal entry modes for multinationals

Eicher, Theo S.; Kang, Jong Woo - 2004

We examine multinational' optimal entry modes into foreign markets as a function of market size, FDI fixed costs, tariffs and transport costs. Our results highlight why large countries are more likely to attract acquisition investment, while intermediate-sized countries may be served...

Persistent link: https://www.econbiz.de/10002059863

Trade costs, trade balances and current accounts : an application of gravity to multilateral trade ; presented at CESifo Area Conference on Macro, Money & International Finance, Fe...

Fazio, Giorgio; MacDonald, Ronald; Mélitz, Jacques - 2005

In this paper we test the well-known hypothesis of Obstfeld and Rogoff (2000) that trade costs are the key to explaining the so-called Feldstein-Horioka puzzle. Using a gravity framework in an intertemporal context, we provide strong support for the hypothesis and we reconcile our results with...

Persistent link: https://www.econbiz.de/10003144697

Asset ownership and foreign-market entry

Raff, Horst; Ryan, Michael; Stähler, Frank - 2006

This paper examines the link between a firm's ownership of productive assets and its choice of foreign-market entry strategy. We find that, controlling for industry- and country-specific characteristics, the most productive firms (i.e., those owning the most assets) will enter through greenfield...

Persistent link: https://www.econbiz.de/10003296764

Foreign direct investment in producer services : theory and empirical evidence

Raff, Horst; Ruhr, Marc von der - 2001

This paper examines the pattern of foreign direct investment (FDI) in producer services. We develop a model of FDI in these services and test its predictions using panel data on U.S. FDI in 25 host countries from 1976 to 1995. We find evidence that, in addition to governmental and cultural...

Persistent link: https://www.econbiz.de/10001626102

Cross-border mergers and acquisitions : on revealed comparative advantage and merger waves

Brakman, Steven; Garretsen, Harry; Marrewijk, Charles van - 2005

By combining two large data sets (on international trade flows and on mergers and acquisitions M&As), we are able to test two implications of Neary's (2003, 2004a) recent theoretical work. Analyzing M&As in a General Oligopolistic Equilibrium (GOLE) model incorporating strategic interaction...

Persistent link: https://www.econbiz.de/10003277098

Cross-border mergers & acquisitions : the facts as a guide for international economics

Brakman, Steven; Garretsen, Harry; Marrewijk, Charles van - 2006

Using a detailed and large data set on cross-border merger and acquisitions we discuss the relationship between theory and observed empirical characteristics: (i) most FDI is in the form of M&As, (ii) firms engaged in M&As seem to be 'market-seeking', (iii) M&As come in waves (the most recent...

Persistent link: https://www.econbiz.de/10003398717

Do civil and political repression really boost foreign direct investments?

Harms, Philipp; Ursprung, Heinrich W. - 2001

Multinational enterprises are often accused to have a preference for investing in countries in which the working populations' civil and political rights are largely disregarded. This paper presents an empirical investigation of the popular "political repression boosts FDI" hypothesis and arrives...

Persistent link: https://www.econbiz.de/10014460952

How much does violence tax trade?

Blomberg, Stephen Brock; Hess, Gregory D. - 2004

We investigate the empirical impact of violence as compared to other trade impediments on trade flows. Our analysis is based on a panel data set with annual observations on 177 countries from 1968 to 1999, which brings together information from the Rose [2004] dataset, the ITERATE dataset for...

Persistent link: https://www.econbiz.de/10002246167

Exploring the intensive and extensive margins of world trade : presented at Venice Summer Institute, Workshop on Dissecting Globalization, July 2004/ Gabriel J. Felbermayr; Wilhelm...

Felbermayr, Gabriel; Kohler, Wilhelm - 2004

World trade evolves at two margins. Where a bilateral trading relationship already exists it may increase through time … have not traded with each other in the past (extensive margin). We provide an empirical dissection of post-World …-War-II growth in manufacturing world trade along these two margins. We propose a corner-solutions-versionʺ of the gravity model to …

Persistent link: https://www.econbiz.de/10002246182

The impact of corporate and personal income taxes on the location of firms and on employment : some panel evidence for the Swiss cantons

Feld, Lars P.; Kirchgässner, Gebhard - 2001

The impact of corporate income taxes on location decisions of firms is widely debated in the tax competition literature. Tax rate differences across jurisdictions may lead to distortions of firms` investment decisions. Empirical evidence on tax induced relocation and subsequent economic...

Persistent link: https://www.econbiz.de/10001590539