This paper assesses the impacts of R&D, export and the presence of foreign direct investment (FDI) on Chinese manufacturing productivity based on a panel data on more than 10,000 indigenous and foreign-invested firms for the period 1998-2001. Indigenous Chinese firms are found to significantly benefit from their own export activities and R&D spillovers. Given some specific characteristics of Ch...

This study investigates the foreign exchange exposure management of some Swedish and UK firms’ foreign exchange exposure management at three occasions, 1985, 1996, and in 2008. We find that foreign exchange exposure management has become a more centralised activity. This centralisation is driven by the introduction of new administrative systems, the introduction of new legislation (IFRS), earli...

This article aims to investigate role of foreign parent control of international joint ventures (IJVs) in gaining sustainable competitive advantages from partnership with local firm through achieving 1) accesses to local firm’s proprietary resources, 2) promoting knowledge and skills acquisition, 3) economies of scale and scope, 4) market position. Foreign parent firm control is conceptualized ...

We examine the effects of mergers and internal groups (lobbies) in shaping national policies towards foreign direct investment. Lobbying is modeled following the political contributions approach. In this work we develop a partial equilibrium model of an oligopolistic industry in which a number of domestic and foreign firms compete in the market for a homogeneous good in a host country. It is as...

Information asymmetry creates value and incentives for firms from different countries to merge. To demonstrate this point, we develop a model of international trade under oligopolistic competition and asymmetric information, in which domestic firms are informed of the local market demands, but foreign firms are not. By emphasizing two features of a merger between a domestic firm and a foreign f...

The use of foreign direct investment as a channel of international spillovers is by now fairly established in the empirical literature on innovation and growth. It is often argued that subsidiaries of foreign multinational enterprises are a mechanism through which technological know-how flows across borders. For foreign subsidiaries to be channels of international spillovers, these subsidiaries...

In this paper, we challenge the view that foreign investors lead firms to adopt a shortterm orientation and forgo long-term investment. Using a comprehensive sample of publicly listed firms in 30 countries over the 2001-2010 period, we find instead that greater foreign institutional ownership fosters long-term investment in tangible, intangible, and human capital. Foreign institutional presence...

In this paper, we first develop a simple two-period model of oligopoly to show that, under demand uncertainty, whether a firm chooses to serve foreign markets by exports or via foreign direct investment (FDI) may depend on demand volatility along with other well-known determinants such as size of market demand and trade costs. Although fast transport such as air shipment is an option for export...

Ownership structure and industry characteristics as internal and external factors respectively significantly impact the export performance of Chinese manufacturing firms. Three different yet related models, namely, logit, tobit and ordered probit models, that correspond to three different indicators of export performance are considered. It was found that the export performance of Chinese manufa...