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Intangible Assets, Internationalization and Foreign Direct Investment in Manufacturing

Johannes G Denekamp
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Johannes G Denekamp: Wayne State University

Journal of International Business Studies, 1995, vol. 26, issue 3, 493-504

Abstract: This study provides strong empirical evidence in support of the intangible assets model of foreign direct investment. The percentage of lawyers in total employment is introduced as a proxy for the internalization advantage that is associated with the presence of intangible assets. Legal intensity is shown to be directly related to the level of U.S. foreign direct investment abroad for sixty-one manufacturing industries from 1982–1989.© 1995 JIBS. Journal of International Business Studies (1995) 26, 493–504

Date: 1995
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