Firm-specific assets and the link between exchange rates and foreign direct investment

Article Abstract:

Changes in the exchange rate may influence acquisition of foreign direct investment (FDI) due to the involvement in acquisitions of firm-specific assets that can produce currency returns other than those used in the transaction. The possibility of Japanese purchases in US industries, especially those that are more likely to possess firm-specific assets, is increased by real depreciations in the dollar. This is supported by maximum-likelihood estimates from discrete dependent variable models that are derived from data on Japanese purchases from 1975 to 1992 across 3-digit SIC industries in the US.

Intnl Financial Mgmt, Research, Foreign exchange, Financial management, International finance

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Voting for protection: does direct foreign investment influence legislator behavior?

Article Abstract:

Direct foreign investments have to modes of affecting legislator behavior towards protectionist policy, that of swinging moderately protectionist legislators towards free trade or consolidating the protectionist stance of hard-line protectionists. Such an effect can be traced to the localized benefits generated by direct foreign investments, which the legislator uses to steer foreign direct investments into his region.

Administration of General Economic Programs, Foreign Investment Regulations, Investments, Political aspects, Foreign investment laws, Foreign business enterprises

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Estimating the knowledge-capital model of the multinational enterprise: comment

Article Abstract:

The econometric misspecification in Carr et al. estimation of knowledge-capital model is corrected. The impact of skill difference on foreign direct investment is examined.

United States, Personnel administration, Multinational Corporations, Analysis, Economic aspects, Human resource management, International business enterprises, Comparative analysis, Knowledge management, Company personnel management, Skilled labor, Skilled labour

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