An overlooked aspect of agglomeration economies, which are positive externalities that stem from the geographic clustering of industry, is that firms contribute to the externality in addition to benefiting from the externality. This insight suggests that if firms are heterogeneous they will differ i
Firm-Specific Characteristics and the Timing of Foreign Direct Investment Projects
β Scribed by Horst Raff; Michael J. Ryan
- Publisher
- Springer-Verlag
- Year
- 2008
- Tongue
- English
- Weight
- 385 KB
- Volume
- 144
- Category
- Article
- ISSN
- 1610-2878
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## Abstract This paper investigates factors affecting the global sourcing choices of firms in the US: (1) US investment abroad; (2) foreign direct investment in the US; (3) wageβproductivity ratio; and (4) transaction cost. I found that there is a statistically significant association between the c
We argue that foreign firms operating in a host country generate information spillovers that have potential value for later foreign direct investment. We test two predictions. First, we expect foreign direct investments by firms with experience in a host country to be more likely to survive than inv