FDI versus Exports Substitutes or Complements? A Three Nations Model and Empirical Evidence

Arbeitspapier

There are two main options for companies to serve foreign markets; exports and foreign direct investment (FDI). Based on the Helpman, Melitz and Yeaple (2004) model for two host countries this paper derives a clear theoretical prediction for the decision between both strategies. A bivariate probit model is estimated using AMADEUS database to analyse the probability of using one or the other strategy. The empirical evidence indicates that a considerable number of companies use a combination of both strategies to serve foreign markets, which is in line with the analyzed three country model.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: FIW Working Paper ; No. 12

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Multiple or Simultaneous Equation Models: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions ; Firm Behavior: Theory ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
• Thema: Exports ; Foreing Direct Investment ; Three Nations Model ; Bivariate Probit Estimation

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Oberhofer, Harald ; Pfaffermayr, Michael
• Ereignis: Veröffentlichung
• (wer): FIW - Research Centre International Economics
• (wo): Vienna
• (wann): 2008

Weitere Informationen

• Handle: http://hdl.handle.net/10419/121013
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ