Asset ownership and foreign-market entry

Arbeitspapier

This paper examines the link between a firm's ownership of productive assets and its choice of foreign-market entry strategy. We find that, controlling for industry- and country-specific characteristics, the most productive firms (i.e., those owning the most assets) will enter through greenfield investment, less productive ones will choose M&A, and the least productive ones will export. In addition, the most productive firms are shown to prefer whole ownership to a joint venture. These predictions are confirmed in an econometric analysis of Japanese firm-level data.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 1676

Classification and Topics

• Classification: Wirtschaft ; Economic Integration ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
• Subject: foreign direct investment ; merger and acquisition ; joint venture ; greenfield investment ; firm heterogeneity ; productivity ; Direktinvestition ; Internationale Markteintrittsstrategie ; Betriebsvermögen ; Produktivität ; Schätzung ; Theorie ; Multinationales Unternehmen ; Japan

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Raff, Horst ; Ryan, Michael ; Stähler, Frank
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/19140
• Last update: 10.03.2025, 11:44 AM CET