Firm-Specific Characteristics And The Timing Of Foreign Direct Investment Projects
- Topics:
- Foreign Direct Investment
- Tags:
- Currency & Foreign Exchange,
- Finance,
- Firm,
- Foreign Direct Investment,
- Foreign Direct Investment (FDI),
- Investment,
- Western Michigan University
- Source:
- Western Michigan University
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Overview: This paper uses a proportional hazard model to study foreign direct investment by Japanese manufacturers in Europe between 1970 and 1994. Each firm's investment total is divided into a sequence of individual investment decisions, and analyze how firm-specific characteristics affect each decision. The authors found that total factor productivity is a significant determinant of a firm's initial and subsequent investments. Parent-firm size does not have a significant influence on the initial decision to invest. Large firms simply have more investments than smaller firms. Other firm-specific characteristics, such as the R&D intensity, export share and keiretsu membership, also play a role in the investment process.
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Format: PDF | Size: 265KB | Date: Feb 2006 | Pages: 36
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