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Firm Productivity and the Foreign-Market Entry Decision
| Content Provider | EconStor |
|---|---|
| Author | Raff, Horst Ryan, Michael Stähler, Frank |
| Abstract | We use Japanese firm-level data to examine how a firm?s productivity affects its choice of foreign-market entry strategy. We study a sequence of decisions, starting with the choice between exporting and foreign direct investment (FDI). In the case of FDI, the firm faces two options: greenfield investment or merger and acquisition (M&A). If it selects greenfield investment, it has two ownership choices: whole ownership or a joint venture. Controlling for industry- and country-specific characteristics, we find that the more productive a firm is, the more likely it is to choose FDI rather than exporting, greenfield investment rather than M&A, and whole ownership rather than a joint venture. We also find that the assumed sequence of decisions fits the data better than alternative specifications. |
| File Format | |
| Language | English |
| Publisher | Kiel University, Department of Economics |
| Publisher Date | 2008-01-01 |
| Publisher Place | Kiel |
| Access Restriction | Open |
| Rights Holder | http://www.econstor.eu/dspace/Nutzungsbedingungen |
| Subject Keyword | Foreign direct investment merger and acquisition joint venture greenfield investment firm heterogeneity productivity Internationale Markteintrittsstrategie Direktinvestition Unternehmen Produktivität Japan Economic Integration Models of Trade with Imperfect Competition and Scale Economies; Fragmentation |
| Content Type | Text |
| Resource Type | Article |
