This paper compares greenfields and acquisitions as foreign direct investment (FDI) alternatives used by transnational corporations (TNCs). First, the determinants leading to the choice of companies between the two modes of entry into a foreign market are laid out. Then, specific features of each alternative are highlighted, by contrasting the advantages and disadvantages of both types of FDI. ...

The international direct investment theory is one of domains which develop quickly in the international economics after the Second World War. Comparing with that obviously, the research of influencing factors about FDI (Foreign Direct Investment) develops very slowly. For a long time, FDI was thought to exert very important function to the economical increase of the host country, but in recent ...

A number of studies have found that foreign direct investment (FDI) can have positive impacts on productivity. However, while FDI has clearly positive impacts on technology transfers, its effects on resource use within firms is less clear and, in principle, efficiency losses might offset some of the productivity gains associated with improved technologies. In this paper, we study the impacts of...

The purpose of this paper is to examine the allocation of the FDI flows in the East Asian region among Southeast Asian countries and China. In addition, it will also investigate the role of the public policy and the private firms during the foreign direct investment process in 1990s. In particular, we will emphasize the Taiwan case, since Taiwan has been one of the main contributors in this reg...

This paper considers a new-product firm’s choice between exporting and foreign direct investment (FDI) to access foreign markets. We find that, when quality is unknown to buyers, the firm may choose FDI over exporting to signal quality, even though FDI is a costlier mode of access than exporting. We then use the model to study the effect of local labor requirement policy imposed by the host cou...

This paper constructs a game-theoretic model to study host country policy to attract import-substituting foreign direct investment (FDI). Investors are assumed to be incompletely informed about local investment conditions, and taxes and tariffs are determined endogenously. We show that in certain situations countries will offer tax incentives while in others they will impose a tariff wall to in...

This paper studies the role of business and social networks in international investment by examining the effects of ethnic Chinese networks on foreign direct investment (FDI) in China. After controlling for a variety of economic determinants of FDI, this study finds a significant positive role in inward FDI of ethnic Chinese networks proxied by the population share of ethnic Chinese in the inve...

During the last decades, the relation between FDI and economic growth has been extensively discussed in the economic literature. Theories and existing literature provide conflicting results concerning this relationship. On one hand, some scholars argue that foreign direct investment could stimulate technological change through the adoption of foreign technology and know-how and technological sp...

Virtually all governments are keen to attract foreign direct investment (FDI). It can generate new jobs, bring in new technologies and, more generally, promote growth and employment. The resulting net increase in domestic income is shared with government through taxation of wages and profits of foreign-owned companies, and possibly other taxes on business (e.g. property tax). FDI may also posit...

â â â â â â â â â â â â â â â  â  abstract â  the effect of technology spillovers is widely considered as one of the main channels through which domestic firms benefit from fdi, and plays an important role in economic development of host countries. based on the analysis framework for technology spillovers established by borensztein et al. (1998), this paper will analyse and try to figure out th...