An Assignment Theory of Foreign Direct Investment

Topics:
Investment and Capital Markets
Tags:
Acquisition,
Currency & Foreign Exchange,
Finance,
Foreign Direct Investment,
Foreign Direct Investment (FDI),
Investment,
Mergers & Acquisitions,
Theory
Source:
National Bureau of Economic Research

FREE Registration is required

Vendor Registration: $ Paid Download

Overview: This paper develops an assignment theory to analyze the volume and composition of foreign direct investment (FDI). Firms conduct FDI by either engaging in Greenfield investment or in cross-border acquisitions. Cross-border acquisitions involve firms trading heterogeneous corporate assets to exploit complementarities, while Greenfield FDI involves building a new plant in the foreign market. Firms engaging in Greenfield investment are systematically more efficient than those engaging in cross-border acquisitions. Furthermore, most FDI takes the form of cross-border acquisitions when factor price differences between countries are small, while Greenfield investment plays a more important role for FDI from high-wage into low-wage countries.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 420KB | Date: Dec 2004 | Pages: 41

People who downloaded this item also downloaded

Tools & Templates Contract Change Management
White Paper Foreign Direct Investment And Productivity Growth: A Survey Of Theory
White Paper The Performance Of Foreign Firms And The Macroeconomic Impact Of FDI
White Paper FDI: A Difficult Connection Between Theory And Empirics
White Paper Trade, Foreign Direct Investment Or Acquisition: Optimal Entry Modes For Multinationals

Top results from Investment and Capital Markets

White Paper Risk Analysis and Capital Adequacy of Hedge Funds
White Paper On the Performance of Alternative Investments: CTAs, Hedge Funds, and Funds-of-Funds
White Paper Intermediary Risk In The Indirect Holding System For Securities
White Paper Hedge Funds & Listed Options: Portfolio Management Strategies
White Paper European Asset Management Industry Set for Slower Profit Growth, According to Oliver, Wyman & Company and UBS Warburg

» View all Investment and Capital Markets listings

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Returning users: Log In Here!

Already registered on BNET, TechRepublic, or ZDNet? Simply log in.

Free Membership: Sign Up Now!

Sign up for a free membership today and get instant and unlimited access to one of the largest databases of white papers, webcasts, and casestudies anywhere. Your FREE membership allows you to:

  • Download an unlimited amount of content, including classic and current white papers, case studies, webcasts and more
  • Track content on your chosen topics of interest
  • Receive targeted email alerts when your favorite content is added
  • Save content for future reading
  • Receive our member newsletter

When you register to access this directory, you become a member of BNET. In addition, you allow us to share your information with companies that produce products or services featured in the library--so that such companies may contact you with information and offers regarding their products and services. This enables us to keep the library a free service. As a directory registrant, you will receive a complimentary subscription to the BNET member newsletter, The BNET Report. You can unsubscribe from this newsletter at any time. By clicking the Sign up button, you indicate that you agree to our Terms and Conditions and have read and understand our Privacy Policy (updated).