Exports Versus FDI in Smith-Motta Framework

• Autorzy: Andrzej Cieślik
• Języki publikacji: EN

Abstrakty

EN

In this paper we study the choice between exporting and foreign direct investment (FDI) in the Smith-Motta duopoly framework. First, we identify the conditions necessary for exporting and FDI, depending on the costs of exporting and the cost of foreign investment. Then, we discuss various proximity concentration tradeoffs. Finally, we demonstrate that six possible types of equilibriums may emerge depending on various combinations of the key parameters of the model. These equilibriums include: a monopoly FDI equilibrium, a monopoly exporting equilibrium, a domestic monopoly equilibrium, a duopoly FDI equilibrium, a duopoly exporting equilibrium, and no entry equilibrium. (original abstract)

Słowa kluczowe

EN

Export; Direct investments; Foreign investment

PL

Eksport; Inwestycje bezpośrednie; Inwestycje zagraniczne

• Czasopismo: Equilibrium
• Rocznik: 2016
• Tom: 11
• Numer: nr 2
• Strony: 189--218

Twórcy

autor

Andrzej Cieślik

• University of Warsaw, Poland

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Identyfikatory

DOI

10.12775/EQUIL.2016.009