Share and Export
Share and Export
Leahy, Dermot (2008) Playing away to win at home. Journal of Economics and Business, 60. pp. 455-468. ISSN 0148-6195
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Abstract
This paper presents a model of the interaction between two rival firms based in the same country. Each
firm must decide how to serve a foreign market (export or foreign production) and how much to invest in a
corporate-wide asset that reduces production costs and/or augments the willingness-to-pay for their product.
In this scenario, the firms’ foreign direct investment decisions are interdependent. Furthermore, strategic
motives for FDI relate to a firm’s domestic, as well as foreign, market profits. One possibility is that a firm
sets up overseas production even though its foreign market profits would be higher by exporting.
| Item Type: | Article |
|---|---|
| Keywords: | Foreign direct investment; Multinational firm; R&D; Oligopoly; |
| Academic Unit: | Faculty of Social Sciences > Economics, Finance and Accounting |
| Item ID: | 8460 |
| Identification Number: | 10.1016/j.jeconbus.2007.08.001 |
| Depositing User: | Dermot Leahy |
| Date Deposited: | 18 Jul 2017 08:41 |
| Journal or Publication Title: | Journal of Economics and Business |
| Publisher: | Elsevier |
| Refereed: | Yes |
| Related URLs: | |
| Use Licence: | This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here |
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