FDI as an outcome of the market for corporate control: Theory and evidence

• 成果类型: Article
• 署名作者: Head, Keith; Ries, John
• 署名单位: University of British Columbia
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2007.04.004
• 发表日期: 2008
• 页码: 2-20
• 关键词: foreign direct investment; Mergers and Acquisitions; gravity; benchmark

摘要

Much foreign direct investment (FDI) takes the form of mergers and acquisitions (M&A). It is commonplace in finance to view acquisitions as manifestations of the market for corporate control. Following on that insight we propose a model of FDI in which headquarters bid to control overseas assets. We derive an equation for bilateral FDI stocks that resembles the recently developed fixed effects approach to modelling bilateral trade flows. We estimate the model and use its parameters to construct benchmarks for evaluating multilateral inward and outward FDI. (C) 2007 Elsevier B.V All rights reserved.