Location factors of export-platform foreign direct investment: Evidence from Vietnam
The purpose of this paper is to examine the export-platform foreign direct investment as a strategic behavior of multinational firms. First, we use a three-country model to identify the main location factors of this investment. These factors are relative labor cost between the host country and the home country and/or the third country, technological transfer cost of host country, intra-regional transport cost and the market size of third country. Particularly, this kind of investment is preferred rather than other entry modes, if and only if, the third market size is high enough. Second, the model is tested for export oriented industries in Vietnam. The integration of the Vietnamese economy into regional or international markets has a positive impact on the choice of export-platform foreign direct investment strategy. In particular, in this country, the first motivation is to access to large markets (ASEAN, U.S., European Union). Other motivations concern low cost of technological transfer and real exchange rate.
|Date of creation:||Mar 2013|
|Date of revision:|
|Contact details of provider:|| Postal: 4, bld Francois Mitterand, 91025 Evry Cedex|
Phone: +33 1 69 47 71 77
Fax: +33 1 69 47 70 50
Web page: http://epee.univ-evry.fr
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:eve:wpaper:13-04. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Samuel Nosel)
If references are entirely missing, you can add them using this form.