Much foreign direct investment (FDI) takes the form of mergers and acquisitions (M&A). It is commonplace in finance to view acquisitions as manifestations of the market for corporate control. Following on that insight we propose a model of FDI in which headquarters bid to control overseas assets. We derive an equation for bilateral FDI stocks that resembles the recently developed fixed effects ...

This paper studies the effects of EU antidumping policy when foreign firms have the possibility to ’jump’ antidumping measures by engaging in foreign direct investment (FDI) in the EU. Using a multi-stage framework, we study the EU administration’s choice between an antidumping duty and a price-undertaking, taking into account the effect of these measures on the location decision of the foreign...

The paper empirically identifies the determinants of growth in foreign direct investment (FDI) in Pakistan over the period 1961 to 2003. Our main interest is to study how different variables or indicators reflecting trade, fiscal and financial sector liberalization attract FDI in Pakistan. The study uses the Cointegration and error-correction techniques to identify the variables in explaining t...

Within the new growth framework, this paper attempts to investigate the performance of foreign direct investment, i.e. how efficient FDI as one of the factor inputs in an economy has been utilised. In the empirical analyses, an input-oriented distance function approach is employed to estimate the technical efficiency of FDI in China’s coastal regions over the period 1983–1995.  2000 Elsevier S...

This paper uses logit regression on the responses of 383 Japanese manufacturing firms located in the member countries of the European Union to investigate the motives for foreign direct investment. Japan External Trade Organisation (JETRO) data, as published in their 8th Annual Survey (October 1992) classified by industry, were used. The results confirm that decisions leading to FDI cannot be e...

The objective of this research is to analyze the geographical distribution of the research and development (R&D) collaboration of Japanese multinational enterprises (MNEs) in China. We analyze location strategies of overseas R&D activities on a regional instead of a national level. We first discuss the linkage of foreign direct investment (FDI) and ensue knowledge spillovers from MNEs to a host...

This paper investigates the existence of Granger causality and cointegrated relationships between tourism related Foreign Direct Investment (FDI) and tourism development in developing countries using panel VECM techniques from 1995 to 2008. The results confirm the existence of a co-integrated relationship between variables in the long run. In addition, there is a bilateral long-run causality be...