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FDI theory and foreign direct investment in the United States: a comparison of investors and non-investors

  • Trevino, Len J.
  • Daniels, John D.
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    This study used discriminant function analysis on a sample of 240 non-US firms to determine if they could be correctly classified as direct investors or non-investors in the United States for each year during the five year period 1984-1988. Results were robust, correctly classifying 72.81% of all firms (5-year average). Specifically, investors were larger and more profitable than non-investors. They came from industries with higher exports to the United States, and which spend more on research and development. Unexpectedly, prior rates of industry export growth to the United States and global industry concentration did not discriminate between investors and non-investors.

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    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 4 (1995)
    Issue (Month): 2 (June)
    Pages: 177-194

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    Handle: RePEc:eee:iburev:v:4:y:1995:i:2:p:177-194
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    1. James M Lutz & Robert T Green, 1983. "The Product Life Cycle and the Export Position of the United States," Journal of International Business Studies, Palgrave Macmillan, vol. 14(3), pages 77-93, September.
    2. Horst, Thomas, 1972. "Firm and Industry Determinants of the Decision to Invest Abroad: An Empirical Study," The Review of Economics and Statistics, MIT Press, vol. 54(3), pages 258-66, August.
    3. Chwo-Ming J Yu & Kiyohiko Ito, 1988. "Oligopolistic Reaction and Foreign Direct Investment: The Case of the U.S. Tire and Textiles Industries," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 449-460, September.
    4. Caves, Richard E, 1971. "International Corporations: The Industrial Economics of Foreign Investment," Economica, London School of Economics and Political Science, vol. 38(149), pages 1-27, February.
    5. H. Baumann, 1975. "Merger theory, property rights and the pattern of U. S. Direct Investment in Canada," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 111(4), pages 676-698, December.
    6. Kravis, Irving B. & Lipsey, Robert E., 1982. "The location of overseas production and production for export by U.S. multinational firms," Journal of International Economics, Elsevier, vol. 12(3-4), pages 201-223, May.
    7. Severn, Alan K. & Laurence, Martin M., 1974. "Direct Investment, Research Intensity, and Profitability," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 9(02), pages 181-190, March.
    8. Orr, Dale, 1974. "The Determinants of Entry: A Sudy of the Canadian Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 56(1), pages 58-66, February.
    9. Edward Brown Flowers, 1976. "Oligopolistic Reactions in European and Canadian Direct Investment in the United States," Journal of International Business Studies, Palgrave Macmillan, vol. 7(2), pages 43-56, June.
    10. Caves, Richard E, 1974. "Causes of Direct Investment: Foreign Firms' Shares in Canadian and United Kingdom Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 56(3), pages 279-93, August.
    11. Giorgio Ragazzi, 1973. "Theories of the Determinants of Direct Foreign Investment (Théorie des facteurs qui déterminent l'investissement étranger direct) (Teorías de los determinantes de la inversión extranjera directa)," IMF Staff Papers, Palgrave Macmillan, vol. 20(2), pages 471-498, July.
    12. Mansfield, Edwin & Romeo, Anthony & Wagner, Samuel, 1979. "Foreign Trade and U.S. Research and Development," The Review of Economics and Statistics, MIT Press, vol. 61(1), pages 49-57, February.
    13. Teece, David J., 1986. "Transactions cost economics and the multinational enterprise An Assessment," Journal of Economic Behavior & Organization, Elsevier, vol. 7(1), pages 21-45, March.
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