Host market competition, foreign FDI and domestic welfare

Yingyi Tsai, Arijit Mukherjee, Jong Rong Chen

研究成果: 雜誌貢獻期刊論文同行評審

4 引文 斯高帕斯(Scopus)


This paper studies the impact on domestic welfare and a foreign firm's entry mode of a greater host market competition. We find that a stronger domestic competition may attract or deter FDI. We also show that higher domestic competition can raise domestic welfare either when it attracts FDI or when it does not affect the foreign firm's entry mode choice. Nonetheless, higher domestic competition may reduce domestic welfare if FDI is deterred. Our finding suggests that competition policy in the host country ought to be complemented by its foreign investment policy when foreign firm makes its FDI/export decision.

頁(從 - 到)13-22
期刊International Review of Economics and Finance
出版狀態已出版 - 1 3月 2016


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