Available online 6 November 2012

Based on Dunning’s OLI framework and the investment development path theory, this paper investigated the determinants of outward FDI by China’s provincial firms. The results show that provincial economic development, innovation and technology, and export to GDP ratio are statistically significant determinants, while FDI inflows, import to GDP ratio and provincial market size are not statistical...

Theoretical considerations suggest that the option of waiting under conditions of uncertainty affects the relative importance of firm-level productivity and distance-related transaction costs as driving forces of FDI. Yet the timing of FDI has received little attention in the empirical literature on FDI determinants. To help close this gap we analyze FDI decisions by German firms with and witho...

We explore entry into a foreign market with uncertain demand growth. A multinational can serve the foreign demand by two modes, or by a combination thereof: it can export its product, or it can create productive capacity via Foreign Direct Investment. The advantage of FDI is that it allows lower marginal cost than exports. The disadvantage is that FDI is irreversible and, hence, entails the ris...

.................................................................................................................... 7 Technology and the learning process ...................................................................... 7 Technology and competitiveness ......................................................................... 10 Latecomer industrialisation and the role of technology in dev...