FDI as a signal of quality

Seiichi Katayama and Kaz Miyagiwa ()

Economics Letters, 2009, vol. 103, issue 3, 127-130

Abstract: A new-product firm's entry strategy into foreign markets is considered. We show that, when product quality is unknown, a new-product firm may choose FDI over exporting to signal quality even if exporting is more cost-effective.

Keywords: Foreign; direct; investment; (FDI); Exporting; Unknown; quality; Signaling (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165-1765(09)00074-3
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:103:y:2009:i:3:p:127-130

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().