The U.S. government awarded export subsidies to agribusiness firms through the Export Enhancement Program (EEP). This study analyzes (a) whether the subsidies promoted new firm market entry and (b) whether firm characteristics influenced program participation. Trade in three commodities, poultry, wheat, and wheat flour, was analyzed using firm-level data. It was found that new firm market entry...

This paper discusses the impact of foreign direct investment (FDI) on market entry and welfare in a model of two countries and two periods. In the first period, firms enter the market as national firms, in the second period, FDI is possible. The paper demonstrates that FDI reduces market entry because equilibrium profits in the second period decline with a decrease in the fixed cost of FDI. The...

We investigate the effect of a stock market liberalization on industry growth in emerging markets. Consistent with the view that liberalization reduces financing constraints, we find that industries that are more externally dependent and face better growth opportunities grew faster following liberalization. However, this growth increase appears to come from an expansion in the size of existing ...

This dissertation consists of three essays that examine banking and corporate finance in developing countries. Specifically, it explores the theoretical and empirical implications of open capital markets, foreign bank entry, and the role of bond markets during banking crises. Chapter 1 analyzes the impact of opening capital markets using a theoretical model that incorporates both foreign and do...

International entries into transition economies occur infrequently and involve considerable uncertainty. This raises the question whether managers, who have limited own experience, take their competitors’ prior decisions into account when deciding on their own entry timing and size and whether there is value in doing so. To address these questions, the authors estimate a sequential hazard/Poiss...

New firms are endowed with knowledge and experience at birth through the human capital of their founder(s). Existing empirical research suggests that this pre-entry knowledge and experience will influence the firm’s chances of survival; however, the mechanisms underlying this relationship have yet to be investigated. We seek to better understand and unpack this relationship. Specifically, we st...

A free entry model with linear costs is considered where firms first choose their entry time and then compete in the market according to the resulting timing decisions. Multiple equilibria arise allowing for infinitely many industry output configurations encompassing one limit-output dominant firm and the Cournot equilibrium with free entry as extreme cases. Sequential entry is never observed. ...

The so-called excess-entry theorem establishes conditions guaranteeing that more firms enter a homogeneous Cournot-oligopoly in equilibrium than benevolent government prefers. We generalize the approach and analyze behavior of competition authority, which attaches different weights to firms' consumers' payoffs, with welfare-maximization constituting special case. greater importance consumers, l...

This paper analyses the impact of technological change and productive efficiency on the dynamics of industrial competition. Our theoretical model takes into account the innovation possibilities and the organisational structure of the firm. It considers three decision stages in which firms first have to solve for output and profits (and the market price), given the state of production techniques...

Article history: Received 1 October 2008 Received in revised form 1 September 2009 Accepted 1 January 2010 Available online 8 April 2010 Investments in China by firms from emerging economies were studied to determine how various reference groups affect their foreign market entry behavior. Imitation was shown to be an important factor, but the mechanism seems to vary depending on the institution...