10.4225/03/5934ce9769aa1
Ellis, Christopher J.
Christopher J.
Ellis
Fausten, Dietrich
Dietrich
Fausten
Strategic FDI and Industrial Ownership Structure
Monash University
2017
Keiretsu
1959.1/2191
monash:2191
FDI
2001
Networks
2017-06-05 03:23:02
Journal contribution
https://bridges.monash.edu/articles/journal_contribution/Strategic_FDI_and_Industrial_Ownership_Structure/5072932
We argue that different industrial ownership structures generate different incentives for firms to engage in FDI. We compare (partially) cooperative structures such as the Japanese kieretsu and Korean chaebol systems, with competitive structures such as US firms. We find significant differences in the probability of initial FDI and the lag between initial entry and subsequent investments. This has further implications for the optimal FDI incentives of potential host countries.