'Make-or-Buy' in International Oligopoly and the Role of Competitive Pressure

Dermot Leahy and Catia Montagna

No 197, Dundee Discussion Papers in Economics from Economic Studies, University of Dundee

Abstract: The aim of this paper is to make a first step towards studying the role of social expenditure and its interaction with corporate taxation in determining the destination of foreign direct investment (FDI) flows. Using panel data for 18 OECD countries and measuring the extent of social welfare policies by the (public social expenditure)/GDP ratio, we find strong support for the conjecture that redistributive social welfare state policies are valued by multinationals as, for instance, they may signal a government’s commitment to social stability.

Keywords: Outsourcing; Vertical Integration; Trade Liberalisation; Oligopoly (search for similar items in EconPapers)
JEL-codes: F12 L13 L14 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2006-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: MAKE-OR-BUY’ IN INTERNATIONAL OLIGOPOLY AND THE ROLE OF COMPETITIVE PRESSURE (2007)
Working Paper: ‘Make-or-Buy' in International Oligopoly and the Role of Competitive Pressure (2007)
Working Paper: ‘Make-or-Buy’ in International Oligopoly and the Role of Competitive Pressure (2007)
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