Strategic FDI and industrial ownership structure

Christopher J. Ellis and Dietrich Fausten

Canadian Journal of Economics, 2002, vol. 35, issue 3, 476-494

Abstract: We argue that different industrial ownership structures generate different incentives for firms to engage in FDI. A comparison is made between (partially) cooperative structures such as the Japanese and Korean systems and competitive structures such as U.S. firms. It is found that ownership structure has significant implications for the probability of initial FDI. Whether or not a cooperative structure is also coordinated turns out to be crucial in predicting FDI behaviour. This has further implications for the optimal FDI incentives of potential host countries and for how empirical studies might be designed.

JEL-codes: F10 F21 F23 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (4)

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