Risk and the technology content of FDI: A dynamic model

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• 作者：Pao-Li Chang^a ; ^{plchang@smu.edu.sg} ; Chia-Hui Lu^b ; ^{lu.chiahui@cityu.edu.hk}
• 关键词：F21 ; F23 ; O24 ; O33
• 刊名：Journal of International Economics
• 出版年：2012
• 期刊代码：44_00221996
• 类别：eco
• 出版时间：March, 2012
• 卷：86
• 期：2
• 页码：306-317
• 文件大小：1547 K

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鈥攆irms 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.