Changing places - the role of heterogeneity and externalities in cumulative processes

Article Abstract:

A dynamic reduced-form model may be used to analyze the geographical production pattern of both firms when moving from one location to another. Players involved in the model select between two locations, 0 and 1, in an infinite number of periods. If the whole population is situated in one location, strong externalities will serve as a barrier in transferring to a new location to start their production. However, when momentum is started more players are expected to follow suit.

Analysis, Economic aspects, Mathematical models, Business relocation, Industrial locations, Industrial location, Economic geography

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Expropriation and control rights: a dynamic model of foreign direct investment

Article Abstract:

The strategic interaction between a host country and a foreign direct investor is analyzed in terms of how the investor can utilize control rights in protecting investments from 'creeping expropriation.' It is shown that very weak options on the part of the investing entity can result in instances of underinvestment. However, outside options that are too much in favor of the foreign direct investor can result in cases of overinvestment.

Administration of General Economic Programs, Foreign Investment Regulations, Foreign investments, Foreign corporations, Foreign investment laws

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Size and growth of Japanese plants in the United States

Article Abstract:

Research is presented concerning the relationship between the size and speed of growth of Japanese manufacturing affiliates within the US. The smaller plants were found to display the fastest rates of growth.

Japan, Industrial efficiency, Economic efficiency, Factories, Growth

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