Oligopolistic Reaction and Foreign Direct Investment: The Case of the U.S. Tire and Textiles Industries

Chwo-Ming J Yu and Kiyohiko Ito
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Chwo-Ming J Yu: University of Illinois
Kiyohiko Ito: University of Michigan

Journal of International Business Studies, 1988, vol. 19, issue 3, 449-460

Abstract: This paper empirically tests the impact of oligopolistic reaction and some firm–related and host country–related factors on FDI activities in the U.S. tire and textile industries. The results reveal that in an oligopolistic industry, firms' motivation of FDI is based on the behavior of rivals as well as host country–related and firm–related factors, while in a more competitively structured industry, firms do not actively counter the competitors' FDI activities.© 1988 JIBS. Journal of International Business Studies (1988) 19, 449–460

Date: 1988
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