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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Main Authors: CHANG, Pao Li, LU, Chia-Hui
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2011
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Online Access: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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spelling 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
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Foreign direct investment
Technology
Risk
Spillover
Dynamic
International Economics
spellingShingle 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
description 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.
format text
author CHANG, Pao Li
LU, Chia-Hui
author_facet CHANG, Pao Li
LU, Chia-Hui
author_sort 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
publisher Institutional Knowledge at Singapore Management University
publishDate 2011
url 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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