Leahy, Dermot (2003) Follow-my-leader FDI and tacit collusion. International Journal of Industrial Organization, 21. pp. 439-453. ISSN 0167-7187
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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 |
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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 |
Related URLs: | |
URI: | https://mural.maynoothuniversity.ie/id/eprint/8468 |
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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