A Dynamic Decision Model of SMEs' FDI
Many scholars generally believe that small and medium-sized enterprises (SMEs) in comparison to large firms are at a disadvantage in foreign direct investment (FDI). However, new evidence suggests that SMEs also play an important role in FDI. Why do they undertake risk in other countries? We are interested in what factors significantly motivate them to go abroad. Taiwan's SMEs play a vital role in her economic development and outward FDI, and this study therefore focuses on the outward FDI of Taiwan's SMEs. We apply the hazard rate approach to perform an empirical analysis, taking into consideration the conditional probability of the element of time. Among SMEs, the lower the degree of "capital intensities," the larger the "firm sizes," the higher the "export ratios," or the larger the level of "R&D intensities" are, the greater the intention will be to undergo FDI. The major factors motivating Taiwanese SMEs to conduct FDI in recent years are "utilizing local labor," "expanding markets," and "following major clients." Copyright 2003 by Kluwer Academic Publishers
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 20 (2003)
Issue (Month): 3 (May)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/new+%26+forthcoming+titles+%28default%29/journal/11187/PS2|