Risk and the technology content of FDI: A dynamic model

• 成果类型: Article
• 署名作者: Chang, Pao-Li; Lu, Chia-Hui
• 署名单位: Singapore Management University; City University of Hong Kong
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2011.09.001
• 发表日期: 2012
• 页码: 306-317
• 关键词: foreign direct investment; TECHNOLOGY; RISK; spillover; dynamic

摘要

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 patterns of FDI in China by US and Taiwanese manufacturing firms. (C) 2011 Elsevier B.V. All rights reserved.