Exporting versus direct investment under local sourcing
Article Abstract:
A setting where foreign direct investment (FDI) shifts demand for an intermediate good from the source to the host country was examined. The results showed two-way equilibrium when the countries have similar market sizes, however, such FDI reduces global welfare relative to two-way exporting since it eliminates indirect competition between suppliers.
Publication Name: Review of World Economics: Weltwirtschaftliches Archiv
Subject: Economics
ISSN: 1610-2878
Year: 2005
User Contributions:
Comment about this article or add new information about this topic:
Exporting versus direct investment under local sourcing
Article Abstract:
A setting where foreign direct investment (FDI) shifts demand for an intermediate good from the source to the host country was examined. The results showed two-way equilibrium when the countries have similar market sizes, however, such FDI reduces global welfare relative to two-way exporting since it eliminates indirect competition between suppliers.
Publication Name: Review of World Economics: Weltwirtschaftliches Archiv
Subject: Economics
ISSN: 1610-2878
Year: 2005
User Contributions:
Comment about this article or add new information about this topic:
Exporting versus direct investment under local sourcing
Article Abstract:
A setting where foreign direct investment (FDI) shifts demand for an intermediate good from the source to the host country was examined. The results showed two-way equilibrium when the countries have similar market sizes, however, such FDI reduces global welfare relative to two-way exporting since it eliminates indirect competition between suppliers.
Publication Name: Review of World Economics: Weltwirtschaftliches Archiv
Subject: Economics
ISSN: 1610-2878
Year: 2005
User Contributions:
Comment about this article or add new information about this topic:
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