Firm-Specific Characteristics and the Timing of Foreign Direct Investment Projects

Michael Ryan and Horst Raff

No 2007-22, Economics Working Papers from Christian-Albrechts-University of Kiel, Department of Economics

Abstract: This paper uses a proportional hazard model to study foreign direct investment by Japanese manufacturers in Europe between 1970 and 1994. We divide each firm?s investment total into a sequence of individual investment decisions and analyze how firm-specific characteristics affect each decision. We find that total factor productivity is a significant determinant of a firm?s initial and subsequent investments. Parent-firm size does not have a significant influence on the initial decision to invest. Large firms simply have more investments than smaller firms. Other firm-specific characteristics, such as the R&D intensity, export share and keiretsu membership, also play a role in the investment process.

Keywords: Foreign direct investment; productivity; hazard model; Japan; keiretsu (search for similar items in EconPapers)
JEL-codes: F23 L20 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-bec and nep-ppm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Firm-Specific Characteristics and the Timing of Foreign Direct Investment Projects (2008)
Working Paper: Firm-Specific Characteristics and the Timing of Foreign Direct Investment Projects (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cauewp:5863

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