Choosing Between Direct Investment and Licensing: Theoretical Considerations and Empirical Tests

Farok J Contractor
Additional contact information
Farok J Contractor: Rutgers University

Journal of International Business Studies, 1984, vol. 15, issue 3, 167-188

Abstract: This paper focuses on the conditions under which an international firm would expand overseas via the transfer of technology and rights to its own controlled equity affiliates, as opposed to resorting to the “market” by selling its technology to independent foreign licensees. The relative propensity of U.S. firms to use licensing versus equity investment is then examined statistically in regression models using data of the Department of Commerce. A second paper in this series (forthcoming in the Summer 1985 issue) will examine strategic and negotiation issues involved in combining equity investment, licensing and intra-firm trade into one agreement.© 1984 JIBS. Journal of International Business Studies (1984) 15, 167–188

Date: 1984
References: Add references at CitEc
Citations: View citations in EconPapers (38)

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v15/n3/pdf/8490501a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v15/n3/full/8490501a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

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:pal:jintbs:v:15:y:1984:i:3:p:167-188

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().