FDI versus Exports: Multiple Host Countries and Empirical Evidence

@inproceedings{Oberhofer2012FDIVE,
  title={FDI versus Exports: Multiple Host Countries and Empirical Evidence},
  author={Harald Oberhofer and Michael Pfaffermayr},
  year={2012}
}
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 multiple host countries this paper derives a clear theoretical prediction for the decision between both strategies. A bivariate probit model is estimated using a large data set of European companies to analyze the probability of using one or the other strategy. The empirical evidence indicates that more productive rms less (more… CONTINUE READING

Figures and Tables from this paper.

Citations

Publications citing this paper.
SHOWING 1-10 OF 28 CITATIONS