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Foreign direct investment and global sourcing choices of firms in the US

✍ Scribed by Hong Y Park


Publisher
John Wiley and Sons
Year
2000
Tongue
English
Weight
92 KB
Volume
21
Category
Article
ISSN
0143-6570

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✦ Synopsis


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) wage–productivity ratio; and (4) transaction cost. I found that there is a statistically significant association between the country of sourcing choices and foreign direct investment. Both the wage–productivity ratios and transaction costs are not statistically significant at the conventional significance level, but their regression coefficients show proper signs. The paper also examines the patterns of foreign direct investment among countries and compares transaction costs by income group. Copyright Β© 2000 John Wiley & Sons, Ltd.


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