MURAL - Maynooth University Research Archive Library



    Follow-my-leader FDI and tacit collusion


    Leahy, Dermot (2003) Follow-my-leader FDI and tacit collusion. International Journal of Industrial Organization, 21. pp. 439-453. ISSN 0167-7187

    [img]
    Preview
    Download (274kB) | Preview


    Share your research

    Twitter Facebook LinkedIn GooglePlus Email more...



    Add this article to your Mendeley library


    Abstract

    This paper presents a simple model to illustrate the following idea: domestic rivals may be motivated to set up foreign production in the same country because the replication of each other’s foreign direct investment (FDI) facilitates collusive behaviour in the market in which they compete. This implies positive interdependence between firms’ FDI decisions, i.e. foreign investment by one firm brings increased incentive for others to follow suit.

    Item Type: Article
    Keywords: Foreign direct investment; Tacit collusion; Oligopoly;
    Academic Unit: Faculty of Social Sciences > Economics, Finance and Accounting
    Item ID: 8468
    Depositing User: Dermot Leahy
    Date Deposited: 18 Jul 2017 12:08
    Journal or Publication Title: International Journal of Industrial Organization
    Publisher: Elsevier
    Refereed: Yes
    URI:

    Repository Staff Only(login required)

    View Item Item control page

    Downloads

    Downloads per month over past year