Publikationsansicht

Mode of foreign entry, technology transfer, and foreign direct investment policy

Abstract

Foreign direct investment can take place through the direct entry of foreign firms or the acquisition of existing domestic firms. Mattoo, Olarreaga, and Saggi examine the preferences of a foreign firm and the host country government with respect to these two modes of foreign direct investment in the presence of costly technology transfer. The tradeoff between technology transfer and market competition emerges as a key determinant of preferences. The authors identify the circumstances in which the choices of the government and the foreign firm diverge-and in which domestic welfare can be improved by restrictions on foreign direct investment that induce the foreign firm to choose the socially preferred mode of entry.. ICT Policy and Strategies,General Technology,Knowledge Economy,Environmental Economics&Policies,Agricultural Research,ICT Policy and Strategies,General Technology,Poverty and Trade,Foreign Direct Investment,Trade and Regional Integration

Details der Publikation

Download	http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2002/01/18/000094946_02010904095675/Rendered/PDF/multi0page.pdf
Archiv	RePEc (Germany)
Typ	preprint

Zitationen dieser Publikation (2)

The Effects of Regional and Industry Wide FDI Spillovers on Export of Ukrainian Firms (2004)

Effects of Foreign Presence in a Transition Economy : Regional and Industry-Wide Investments and Firm-Level Exports in Ukrainian Manufacturing