Firm-Specific Characteristics and the Timing of Foreign Direct Investment Projects

Horst Raff and Michael Ryan

No 1874, CESifo Working Paper Series from CESifo

Abstract: This paper uses a proportional hazard model to study foreign direct investment by Japanese manufacturers in Europe between 1970 and 1994. We divide each firm’s investment total into a sequence of individual investment decisions and analyze how firm-specific characteristics affect each decision. We find 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.

Keywords: foreign direct investment; productivity; hazard model; Japan; keiretsu (search for similar items in EconPapers)
JEL-codes: F23 L20 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-bec, nep-cfn and nep-ppm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Firm-Specific Characteristics and the Timing of Foreign Direct Investment Projects (2008)
Working Paper: Firm-Specific Characteristics and the Timing of Foreign Direct Investment Projects (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_1874

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