Risk, Firm Heterogeneity, and Dynamics of FDI Entry

• Main Authors: CHANG, Pao Li, LU, Chia-Hui
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2009
• Subjects: foreign direct investment; uncertainty; knowledge diffusion; dynamics; magnet effect; Industrial Organization
• Online Access: https://ink.library.smu.edu.sg/soe_research/1084; https://ink.library.smu.edu.sg/context/soe_research/article/2083/viewcontent/Risk_Firm_Heterogeneity_and_Dynamics_of_FDI_Entry.pdf
• Institution: Singapore Management University

We study the dynamics of FDI entry under a setting with firm heterogeneity and FDI uncertainty. The risk of FDI failure depends positively on the complexity of production technology, negatively on the quality of infrastructure in the host country, and evolves over time with the extent of knowledge d...