Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93954
Authors: 
Mugele, Christian
Schnitzer, Monika
Year of Publication: 
2006
Series/Report no.: 
SFB/TR 15 Discussion Paper 98
Abstract: 
We develop a model in which multinational investors decide about the modes of organization, the locations of production, and the markets to be served. Foreign investments are driven by market-seeking and cost-reducing motives. We further assume that investors face costs of control that vary among sectors and increase in distance. The results show that (i) production intensive sectors are more likely to operate a foreign business independent of the investment motive, (ii) that distance may have a non-monotonous effect on the likelihood of horizontal investments, and (iii) that globalization, if understood as reducing distance, leads to more integration.
Subjects: 
Multinational firms
Joint ventures
Distance
Technology spillovers
Ownership structure
JEL: 
F23
L24
L22
L23
D23
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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