Multinational Enterprises and Tobin´s q: The Implications for Foreign Direct Investment

This paper constructs a theoretical model of investment decision abroad supporting the idea that the Multinational Enterprises’ internalization decision is influenced by the capital installation cost. This modification alters MNE’s investment behavior. Using the idea that capital mobility across countries is associated with the capital installation cost then the firm’s maximization problem may also incorporate the Tobin’s q in a modified fashion.

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Year of publication:	2004
Authors:	Chionis, D.
Published in:	International Journal of Applied Econometrics and Quantitative Studies. - Euro-American Association of Economic Development. - Vol. 1.2004, 2, p. 121-130
Publisher:	Euro-American Association of Economic Development
Subject:	Multinational Enterprises \| Foreign Direct Investment \| Tobin’s q

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Type of publication:	Article
Language:	English
Classification:	F13 - Commercial Policy; Protection; Promotion; Trade Negotiations ; F21 - International Investment; Long-Term Capital Movements ; F23 - Multinational Firms; International Business
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005406719