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Playing away to win at home
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| File | Description | Size | Format | |
|---|---|---|---|---|
| WP06.26.pdf | 184.56 kB | Adobe PDF | Download |
| Title: | Playing away to win at home | Authors: | Pavelin, Stephen | Permanent link: | http://hdl.handle.net/10197/1271 | Date: | Dec-2006 | Abstract: | This paper presents a model of the interaction between two rival firms based in the same country. Each firm must decide how to serve a foreign market (export or foreign production) and how much to invest in a corporate-wide asset that reduces production costs and/or augments the willingness-to-pay for their product. In this scenario, the firms’ foreign direct investment decisions are interdependent. Furthermore, strategic motives for FDI relate not to a firm’s domestic, as well as foreign, market profits. One possibility is that a firm sets up overseas production even though its foreign market profits would be higher by exporting. | Type of material: | Working Paper | Publisher: | University College Dublin. School of Economics | Keywords: | Foreign direct investment; Multinational firm; R&D; Oligopoly | Subject LCSH: | Investments, Foreign International business enterprises Research and development projects Oligopolies |
Language: | en | Status of Item: | Not peer reviewed |
| Appears in Collections: | Economics Working Papers & Policy Papers |
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