We present two models of the greenfield-FDI, R&D and entry decisions of rival firms in an international oligopoly. Specifically, we develop a blockaded-entry (BE) two-stage game as a benchmark: in the first stage, the two incumbents choose whether to undertake greenfield-FDI or R&D (or both); in...

Foreign direct investment is in reality a heterogeneous flow of funds, composed of both greenfield-FDI ("greenfield investment") and acquisition-FDI (cross-border mergers and acquisitions). We analyse the choice of FDI mode in an international oligopoly where process R&D decisions are made...

We examine two questions, both motivated by an empirical regularity. First, when are incumbent firms' foreign direct investment (FDI) and R&D expenditures positively associated in equilibrium in an international oligopoly? We show that a positive association can be expected to exist only if most...

We investigate both theoretically and empirically the competitive discipline effect exerted by FDI on plant-level price-cost margins. Using plant level data for manufacturing industries in the United Kingdom we find robust evidence supporting our theoretical predictions: greenfield FDI has a...