Foreign direct investment, intra-firm trade and ownership structure
AbstractAsymmetric information about true opportunity cost in trade between a multinational and its foreign affiliate can alleviate the hold-up problem in foreign direct investment. Selling shares in the affiliate to locals is also beneficial because it increase the parent multinational's information rent that is protected from a host government's confiscatory taxation.
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Bibliographic InfoArticle provided by Elsevier in its journal European Economic Review.
Volume (Year): 45 (2001)
Issue (Month): 3 (March)
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Web page: http://www.elsevier.com/locate/eer
Other versions of this item:
- Konrad, K.A. & Lommerud, K.E., 2001. "Foreign Direct Investment, Intra-firm Trade and Ownership Structure," Norway; Department of Economics, University of Bergen 219, Department of Economics, University of Bergen.
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
- H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
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