PL EN


2016 | 11 | 2 | 189-218
Article title

EXPORTS VERSUS FDI IN SMITH-MOTTA FRAMEWORK

Content
Title variants
Languages of publication
EN
Abstracts
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
Year
Volume
11
Issue
2
Pages
189-218
Physical description
Contributors
References
Document Type
Publication order reference
Identifiers
YADDA identifier
bwmeta1.element.desklight-2eaf4090-ebd9-4580-8001-ab166503df4c
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.