Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/25919 
Year of Publication: 
2006
Series/Report no.: 
CESifo Working Paper No. 1874
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper uses a proportional hazard model to study foreign direct investment by Japanese manufacturers in Europe between 1970 and 1994. We divide each firm's investment total into a sequence of individual investment decisions and analyze how firm-specific characteristics affect each decision. We find that total factor productivity is a significant determinant of a firm's initial and subsequent investments. Parent-firm size does not have a significant influence on the initial decision to invest. Large firms simply have more investments than smaller firms. Other firm-specific characteristics, such as the R&D intensity, export share and keiretsu membership, also play a role in the investment process.
JEL: 
F23
L20
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size
293.57 kB





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