Download or read book FDI and Heterogeneous Firms written by Valeria Gattai and published by . This book was released on 2016 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the link between Outward Direct Investment (ODI) and the performance of BRIC firms. Drawing on firm-level data, we introduce a rich taxonomy of ODI that accounts for the decision to invest and the number, destination and ownership structure of foreign affiliates. Through different econometric models and specifications, we consistently demonstrate that BRIC firms engaged in ODI are in the minority, but they outperform domestic enterprises. Moreover, firms selecting less preferred ODI types outperform firms undertaking other ODI strategies.
Download or read book Impact of firm heterogeneity on direct and spillover effects on FDI written by Jože Pavlič Damijan and published by . This book was released on 2008 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Environmental Regulations Outward FDI and Heterogeneous Firms written by Richard Kneller and published by . This book was released on 2009 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Comparative Advantage and Heterogeneous Firms written by Andrew B. Bernard and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines how country, industry and firm characteristics interact in general equilibrium to determine nations' responses to trade liberalization. When firms possess heterogeneous productivity, countries differ in relative factor abundance and industries vary in factor intensity, falling trade costs induce reallocations of resources both within and across industries and countries. These reallocations generate substantial job turnover in all sectors, spur relatively more creative destruction in comparative advantage industries than comparative disadvantage industries, and magnify ex ante comparative advantage to create additional welfare gains from trade. The relative ascendance of high-productivity firms within industries boosts aggregate productivity and drives down consumer prices. In contrast with the neoclassical model, these price declines dampen and can even reverse the real wage losses of scarce factors as countries liberalize.
Download or read book Investing Across Borders with Heterogeneous Firms written by Swarnim Waglé and published by . This book was released on 2011 with total page 89 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Impact of firm heterogeneity on direct and spillover effects on FDI written by Jože Pavlič Damijan and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book FDI and Heterogeneous Performance of European Enterprises written by Valeria Gattai and published by . This book was released on 2015 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the link between internationalization and performance in Europe. It takes a microeconomic perspective and studies how Foreign Direct Investment (FDI) experience relates with European firms' economic, innovation and financial performance. Drawing on a large longitudinal database, our multinomial logit estimates suggest that FDI really matters. Indeed, firms experiencing some FDI (either inward, outward or both) enjoy a superior performance compared with purely domestic enterprises. Moreover, within the class of FDI players, firms engaged in inward and outward FDI turn out to be better than those engaged only in outward FDI, which are better than those engaged only in inward FDI. These results are robust to several performance measures and alternative specifications including firm, industry and country controls.
Download or read book Trade Liberalization and FDI Strategy in Heterogeneous Firms written by Kazunobu Hayakawa and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Internationalization Strategies in Oligopoly with Heterogeneous Firms written by Maja Barac and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the foreign direct investment (FDI) versus exports decision of foreign oligopolistic firms under cost heterogeneity. An additional motivation for firms to invest abroad is the technological sourcing via spillovers, which flow from the host more efficient firm to foreign less advantaged firms. For intermediate values of the set-up costs associated with FDI entry, it is shown that foreign firms choose opposite entry strategies. An equilibrium where the less efficient foreign firm exports whereas the more efficient invests is more likely to happen when foreign firms become more heterogeneous, the larger the trade costs and not too big oligopolistic profitability. Interestingly, the opposite may also be an equilibrium thus finding that the more efficient firm does not choose to invest, a result that emphasizes the relevance of the strategic setting under consideration. The latter result identifies a market failure since welfare in the host market is higher when both firms undertake FDI; a finding that calls attention to how appropriate are host government policies towards internationalization strategies.
Download or read book Time Zones and FDI with Heterogenous Firms written by Toru Kikuchi and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on Helpman et al. (2004), we propose a simple two-country (Home and Foreign) model with heterogeneous firms that capture the role of FDI via utilizing time zone differences. Two countries are located in different time zones and there is no overlap in daily working hours. It will be shown that productivities of the firms undertaking FDI are higher than the productivities of non-FDI firms. Although the results look quite similar with Helpman et al. (2004), the direction of service trade flow is totally different: Foreign subsidiaries of highproductivity firms provide services for the Home market.
Download or read book Heterogeneous Firms profit Shifting FDI and International Tax Competition written by Sebastian Krautheim and published by . This book was released on 2009 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Firm Heterogeneity and FDI in Distribution Services written by Kiyoyasu Tanaka and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Distribution services play a large role in intermediating production and consumption across borders. Using firm-level data on Japanese multinationals in wholesale and retail sectors, this study examines FDI decisions of distribution firms for local distribution services at the extensive and intensive margin. Consistent with the model of heterogeneous firms on multinational production, I find that more productive multinationals are more likely than less productive multinationals to enter a larger number of markets, to penetrate less attractive markets and to generate larger sales per each market. While these findings are consistent with previous evidence on manufacturing multinationals, I find some distinctive determinants of FDI in distribution services.
Download or read book Trade Policy with Firm Heterogeneity Variable Markups and Foreign Direct Investment written by Ziran Ding and published by . This book was released on 2020 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt: The overarching theme of this dissertation is the analysis of trade policy implication in the presence of firm heterogeneity, variable markups, and multinational production. Chapter 1 surveys the main ingredients and results of heterogeneous firms trade policy literature that has been developing since the early 2000s. First, I present in great detail various stylized facts regarding firm heterogeneity, firm-level markups, and the global structure of multinational production. Second, I summarize the results of the recent development of theoretical approaches of modeling the firm-level markups. Third, I discuss the theoretical frameworks that incorporates multinational production into heterogeneous firms framework. Fourth, I review the trade policy literature that features firm heterogeneity, variable markups, and multinational production. Finally, I highlight the contribution of this dissertation and discuss directions for future research. Chapter 2 introduces ad valorem tariff and horizontal FDI into the Melitz and Ottaviano [2008] framework, producing the first framework in the trade policy literature that incor- porates firm heterogeneity, variable markups, and multinational production. The model generates novel equilibrium implications. First, the presence of multinational production generates a competitive effect on the economy, and firms need to be more productive to survive the competition. Second, the ad valorem tariff and quadratic quasi-linear preference collectively result in an endogenous level of firm entry. Therefore, the impact of trade/tariff liberalization depends on the equilibrium number of firms. In the short-run, when the firm entry is prohibited, an increase in import tariff shields the domestic economy from the For- eign competition, making it easier for firms to survive. This result is overturned when firms can enter the market freely in the long-run. In the long-run, an increase in Home's import tariff will make the Home country a more desirable environment to do business, attracting more entrants in the Home market, making the Home market more competitive. Firms need to be more productive to survive. Home0́9s tariff increase also makes it harder for the least productive Foreign exporters to survive, and triggers tariff-jumping FDI among the most productive exporters. Markups also respond to tariff change differently in the short-run vs. long-run, primarily due to the change of competitive environment associated with firm entry. Chapter 3 studies the welfare implication of tariff and optimal tariffs in an environment features firm heterogeneity, variable markups and FDI. The findings can be broadly sum- marized in three aspects. First, the quadratic quasi-linear preference generates multiple externalities in this economy, causing market outcome to differ from the socially optimum outcome systematically. Permitting FDI lowers the domestic cutoff levels and reduces the misallocation in the economy. Second, free trade is not always socially optimal. If the do- mestic cutoff is sufficiently high, an additional firm entry can improve social welfare. In this case, a positive import tariff is welfare-improving because it encourages firm entry. Third, both positively and normatively, the interaction of variable markup and FDI generates novel trade policy insights that are absent if consumers possess CES preference.
Download or read book Firm Heterogeneity and FDI Related Productivity Spillovers written by Sajid Anwar and published by . This book was released on 2018 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: A number of existing empirical studies have attempted to estimate the foreign direct investment-related productivity spillover effects to domestic firms in host economies using various methodologies and measures of FDI. This literature has produced mixed results. While some studies found positive spillovers, others reported zero or even negative spillovers. In this paper, using a model of firm heterogeneity, we provide a rigorous theoretical justification for the mixed findings. We show that FDI-related productivity spillover effects can be decomposed into a direct and an indirect effect. If the direct effect is positive then relatively less capable domestic firms that were not able to survive in the industry (before the arrival of foreign firms) can enter the industry, which decreases the average (expected) productivity of the industry. If this indirect effect is sufficiently strong then the overall impact of FDI on productivity of domestic firms can be zero or negative. Hence, irrespective of the type of FDI (vertical or horizontal) and control variables included in empirical models, one may find negative or zero spillover effects.
Download or read book The Economies of China and India written by Manmohan Agarwal and published by World Scientific Publishing Company. This book was released on 2017-02-23 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Volume 1. China and India: The International Context and Economic Growth, Manufacturing Performance and Rural Development -- Volume 2. Competitiveness, External Cooperation Strategy, and Income Distribution: Changes in China -- Volume 3. Economic Growth, Employment and Inclusivity: The International Environment
Download or read book Heterogeneous Multinational Firms and Productivity Gains from Falling FDI Barriers written by Shawn Arita and published by . This book was released on 2012 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book International Organization of Production with Heterogeneous Firms written by Erasmus Kersting and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a North-South model with differentiated goods being produced in the North. Each differentiated final good requires both management and manufacturing services as inputs, and firms are heterogeneous with regard to their productivity levels in providing these inputs. Two scenarios of relocating manufacturing to the South, which are interpreted to correspond to vertical foreign direct investment (FDI) and offshoring, are investigated. In both cases there is a minimum level of management productivity required for firms to benefit from relocation of manufacturing to the South. In the case of offshoring, productivity and profit gains are relatively larger for firms with low initial manufacturing productivity. Firms with high initial productivity in both aspects choose not to offshore owing to the presence of fixed costs. The model is subsequently used to examine the implications of global economic integration on the type of firm that exits an industry, changes production location or keeps manufacturing domestically.
