Strategic Foreign Direct Investment in Developing Countries under Demand Uncertainty: Commitment vs. Flexibility

Flexibility and Commitment in Strategic Investment

The paper deals with the tradeoffs between the option value of managerial flexibility and the strategic value of early commitment in a dynamic competitive environment. It departs from the standard real options optimization problem (game against nature) to model strategic games against competition. It thus provides an integration of real options valuation with game-theoretic principles that enab...

Foreign Direct Investment: Flows, Volatility and Growth in Developing Countries

This paper contributes to the literature on FDI and economic growth. We deviate from previous studies by introducing measures of the volatility of FDI inflows. As introduced into the model, these are predicted to have a negative effect on growth. We estimate the standard model using cross-section, panel data and instrumental variable techniques. Whilst all results are not entirely robust, there...

An Examination Of Economic Liberalization Impact On Foreign Direct Investment In Selected Developing Countries

Strategic Technology Choice and Capacity Investment Under Demand Uncertainty

This paper studies the impact of competition on a firm’s choice of technology (product-flexible or product-dedicated) and capacity investment decisions. Specifically, we model two firms competing with each other in two markets characterized by price-dependent and uncertain demand. The firms make three decisions in the following sequence: choice of technology (technology game), capacity investme...

Flow of Foreign Direct Investment to Hitherto Neglected Developing Countries

The last decade or so has witnessed rather dramatic increases in the flow of foreign direct investment (FDI) to the developing countries of the world. However, the balance of evidence seems to point in one direction, the inflow has been uneven. Middle-income developing countries have benefited from this upsurge at the expense of the lower-income countries. In an attempt to explore the two compl...