Strategic FDI and Industrial Ownership Structure

2017-06-05T03:23:02Z (GMT) by Ellis, Christopher J. Fausten, Dietrich
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.