Foreign Direct Investment And R&D Offshoring

Topics:
Foreign Direct Investment
Tags:
Business Operations,
Research & Development,
R&D,
Offshoring,
Investment,
Foreign Direct Investment (FDI),
Foreign Direct Investment,
Finance,
Currency & Foreign Exchange,
University Of Zurich
Source:
University of Zurich

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Overview: This paper analyzes a two-country model of Foreign Direct Investment (FDI). Two firms, each of which is originally situated in only one of the countries, first decide whether to build a plant in the foreign country. Then, they decide whether to relocate R&D activities. Finally, they engage in product-market competition. This paper provides a framework for analyzing the determinants of multinational firms' choices of locations for production and R&D simultaneously. This analysis is motivated by a set of stylized facts on the R&D activities of multinational firms.

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Format: PDF | Size: 389KB | Date: Jun 2006 | Pages: 38

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