Risk and the Technology Content of FDI: A Dynamic Model
This paper incorporates risk into the FDI decisions of firms. The risk of FDI failure increases with the gap between the South's technology frontier and the technology complexity of a firm's product. This leads to a double-crossing sorting pattern of FDI firms of intermediate technology le...
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sg-smu-ink.soe_research-22972019-04-20T15:00:06Z Risk and the Technology Content of FDI: A Dynamic Model CHANG, Pao Li LU, Chia-Hui This paper incorporates risk into the FDI decisions of firms. The risk of FDI failure increases with the gap between the South's technology frontier and the technology complexity of a firm's product. This leads to a double-crossing sorting pattern of FDI firms of intermediate technology levels are more likely than others to undertake FDI. It is with the attempt to relax the upper bound of the technology content of FDI, we argue, that many FDI policies are created. The theory's predictions are consistent with the empirical pattern of FDI in China by US and Taiwanese manufacturing firms. 2011-08-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/soe_research/1298 https://ink.library.smu.edu.sg/context/soe_research/article/2297/viewcontent/FDI_Technology_WP.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Economics eng Institutional Knowledge at Singapore Management University Foreign direct investment Technology Risk Spillover Dynamic International Economics |
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Foreign direct investment Technology Risk Spillover Dynamic International Economics CHANG, Pao Li LU, Chia-Hui Risk and the Technology Content of FDI: A Dynamic Model |
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This paper incorporates risk into the FDI decisions of firms. The risk of FDI failure increases with the gap between the South's technology frontier and the technology complexity of a firm's product. This leads to a double-crossing sorting pattern of FDI firms of intermediate technology levels are more likely than others to undertake FDI. It is with the attempt to relax the upper bound of the technology content of FDI, we argue, that many FDI policies are created. The theory's predictions are consistent with the empirical pattern of FDI in China by US and Taiwanese manufacturing firms. |
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CHANG, Pao Li LU, Chia-Hui |
author_facet |
CHANG, Pao Li LU, Chia-Hui |
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CHANG, Pao Li |
title |
Risk and the Technology Content of FDI: A Dynamic Model |
title_short |
Risk and the Technology Content of FDI: A Dynamic Model |
title_full |
Risk and the Technology Content of FDI: A Dynamic Model |
title_fullStr |
Risk and the Technology Content of FDI: A Dynamic Model |
title_full_unstemmed |
Risk and the Technology Content of FDI: A Dynamic Model |
title_sort |
risk and the technology content of fdi: a dynamic model |
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Institutional Knowledge at Singapore Management University |
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2011 |
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https://ink.library.smu.edu.sg/soe_research/1298 https://ink.library.smu.edu.sg/context/soe_research/article/2297/viewcontent/FDI_Technology_WP.pdf |
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