Arbeitspapier

Modes of Foreign Entry under Asymmetric Information about Potential Technology Spillovers

This paper studies the effect of technology spillovers on the entry decision of a multinational enterprise into a foreign market. Two alternative entry modes for a foreign direct investment are considered: Greenfield investment versus acquisition. We find that with quantity competition a spillover makes acquisitions less attractive, while with price competition acquisitions become more attractive. Asymmetric information about potential spillovers always reduces the number of acquisitions independently of whether the host country or the entrant has private information. Interestingly, we find that asymmetric information always hurts the entrant, while it sometimes is in favor of the host country.

Sprache
Englisch

Erschienen in
Series: Munich Discussion Paper ; No. 2002-8

Klassifikation
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
International Investment; Long-term Capital Movements
Multinational Firms; International Business
Oligopoly and Other Imperfect Markets
Socialist Enterprises and Their Transitions
Thema
Foreign direct investment
multinational enterprise
enty mode
technology spillovers
asymmetric information
transition economies

Ereignis
Geistige Schöpfung
(wer)
Müller, Thomas
Ereignis
Veröffentlichung
(wer)
Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
(wo)
München
(wann)
2002

DOI
doi:10.5282/ubm/epub.12
Handle
URN
urn:nbn:de:bvb:19-epub-12-4
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Müller, Thomas
  • Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät

Entstanden

  • 2002

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