The role of firm ownership in policy competition for foreign direct investment between asymmetric countries

Yasuo Sanjo

International Review of Economics & Finance, 2015, vol. 35, issue C, 110-121

Abstract: This study develops a two-country policy competition model for foreign direct investment between asymmetric countries. It analyzes how firm ownership via foreign capital affects the investment location choice of the foreign firm, and policy competition between the potential host countries. The findings show that the inflow of foreign capital changes the investment location choice of the foreign firm, as does policy competition between the host countries. Further, an increase in the inflow of foreign capital to a domestic firm in the host country heightens the country's attractiveness as an investment location.

Keywords: Foreign direct investment; Policy competition; Role of firm ownership; Location choice (search for similar items in EconPapers)
JEL-codes: F12 F23 H25 L13 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056014001221
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:reveco:v:35:y:2015:i:c:p:110-121

DOI: 10.1016/j.iref.2014.09.009

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().