File Download
  Links for fulltext
     (May Require Subscription)
Supplementary

Article: FDI policy, greenfield investment and cross-border mergers

TitleFDI policy, greenfield investment and cross-border mergers
Authors
KeywordsCompetition (economics)
Developing world
Economic policy
Foreign direct investment
Merger
Issue Date2011
PublisherBlackwell Publishing Ltd. The Journal's web site is located at http://www.blackwellpublishing.com/journal.asp?ref=0965-7576&site=1
Citation
Review Of International Economics, 2011, v. 19 n. 5, p. 836-851 How to Cite?
AbstractThis paper examines a multinational's choice between greenfield investment and cross-border merger when it enters another country via foreign direct investment (FDI) and faces the host country's FDI policy. Greenfield investment incurs a fixed plant setup cost, whereas the foreign firm obtains only a share of the joint profit from a cross-border merger under the restriction of the FDI policy. This trade-off is affected by market demand, cost differential, and market competition, among other things. The host country's government chooses its FDI policy to affect (or alter) the multinational's entry mode to achieve the maximum social welfare for the domestic country. We characterize the conditions shaping the optimal FDI policy and offer intuitions on FDI patterns in developing and developed countries. © 2011 Blackwell Publishing Ltd.
Persistent Identifierhttp://hdl.handle.net/10722/164729
ISSN
2015 Impact Factor: 0.558
2015 SCImago Journal Rankings: 0.518
SSRN
ISI Accession Number ID
References

 

DC FieldValueLanguage
dc.contributor.authorQiu, LDen_HK
dc.contributor.authorWang, Sen_HK
dc.date.accessioned2012-09-20T08:08:44Z-
dc.date.available2012-09-20T08:08:44Z-
dc.date.issued2011en_HK
dc.identifier.citationReview Of International Economics, 2011, v. 19 n. 5, p. 836-851en_HK
dc.identifier.issn0965-7576en_HK
dc.identifier.urihttp://hdl.handle.net/10722/164729-
dc.description.abstractThis paper examines a multinational's choice between greenfield investment and cross-border merger when it enters another country via foreign direct investment (FDI) and faces the host country's FDI policy. Greenfield investment incurs a fixed plant setup cost, whereas the foreign firm obtains only a share of the joint profit from a cross-border merger under the restriction of the FDI policy. This trade-off is affected by market demand, cost differential, and market competition, among other things. The host country's government chooses its FDI policy to affect (or alter) the multinational's entry mode to achieve the maximum social welfare for the domestic country. We characterize the conditions shaping the optimal FDI policy and offer intuitions on FDI patterns in developing and developed countries. © 2011 Blackwell Publishing Ltd.en_HK
dc.languageengen_US
dc.publisherBlackwell Publishing Ltd. The Journal's web site is located at http://www.blackwellpublishing.com/journal.asp?ref=0965-7576&site=1en_HK
dc.relation.ispartofReview of International Economicsen_HK
dc.rightsThe definitive version is available at www.blackwell-synergy.com-
dc.subjectCompetition (economics)-
dc.subjectDeveloping world-
dc.subjectEconomic policy-
dc.subjectForeign direct investment-
dc.subjectMerger-
dc.titleFDI policy, greenfield investment and cross-border mergersen_HK
dc.typeArticleen_HK
dc.identifier.emailQiu, LD: larryqiu@hku.hken_HK
dc.identifier.authorityQiu, LD=rp01093en_HK
dc.description.naturelink_to_subscribed_fulltext-
dc.identifier.doi10.1111/j.1467-9396.2011.00984.xen_HK
dc.identifier.scopuseid_2-s2.0-80054710540en_HK
dc.identifier.hkuros209926en_US
dc.identifier.hkuros207601-
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-80054710540&selection=ref&src=s&origin=recordpageen_HK
dc.identifier.volume19en_HK
dc.identifier.issue5en_HK
dc.identifier.spage836en_HK
dc.identifier.epage851en_HK
dc.identifier.isiWOS:000296027300004-
dc.publisher.placeUnited Kingdomen_HK
dc.identifier.ssrn1945584-
dc.identifier.scopusauthoridQiu, LD=7201538008en_HK
dc.identifier.scopusauthoridWang, S=53664836700en_HK

Export via OAI-PMH Interface in XML Formats


OR


Export to Other Non-XML Formats