EconStor >
Institut für Weltwirtschaft (IfW), Kiel >
Publikationen von Forscherinnen und Forschern des IfW >

Please use this identifier to cite or link to this item:
Title:Analysing foreign market entry: the choice between greenfield investment and acquisitions PDF Logo
Authors:Görg, Holger
Issue Date:1998
Series/Report no.:Trinity Economic Papers Series, Technical Paper / Trinity College 1998,1
Abstract:This paper formalises the choice a firm has to face when entering a foreign market via FDI as between setting up an entirely new plant (greenfield investment) or acquiring an existing indigenous firm. Our results show that in an asymmetric duopoly situation a new entrant will normally be best off by acquiring an existing indigenous low-technology firm, thus, forming a duopoly with an indigenous high-technology firm. While in welfare terms the entry of the foreign firm damages the country in most cases, there exist some possibilities that welfare, particularly after a greenfield investment by the foreign firm, is higher than before entry, even when there is full profit repatriation.
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW

Files in This Item:
File Description SizeFormat
258189940.pdf130.67 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.