Mode of Foreign Entry, Technology Transfer, and Foreign Direct Investment Policy

Foreign direct investment can take place through the direct entry of foreign firms or the acquisition of existing domestic firms. Mattoo, Olarreaga, and Saggi examine the preferences of a foreign firm and the host country government with respect to...

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Main Authors:	Mattoo, Aaditya, Olarreaga, Marcelo, Saggi, Kamal
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	BARGAINING POWER COMPETITIVE MARKETS DIRECT INVESTMENT DOMESTIC COMPETITORS DOMESTIC ECONOMY DOMESTIC FIRM DOMESTIC FIRMS DOMESTIC MARKET EVALUATION OF TECHNOLOGY FDI FOREIGN DIRECT INVESTMENT FOREIGN ENTRY FOREIGN EQUITY PARTICIPATION FOREIGN FIRM FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN OWNERSHIP HOST COUNTRIES HOST COUNTRY HOST-COUNTRY INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTS INTERNATIONAL ECONOMICS INVESTMENT POLICY LOCAL MARKET MARGINAL COST MARKET POWER MARKET SHARE MARKET STRUCTURE MARKET STRUCTURES POLICY RESEARCH POLITICAL ECONOMY R&D-INTENSIVE INDUSTRIES SERVICES MARKETS TECHNOLOGY DIFFUSION TECHNOLOGY TRANSFER TECHNOLOGY TRANSFERS TELECOMMUNICATIONS TELECOMMUNICATIONS SERVICES TRANSFER PRICES TRANSFERRING TECHNOLOGY TECHNOLOGY TRANSFER FOREIGN DIRECT INVESTMENTS INTERVENTION GOVERNMENT ROLE FOREIGN COMPANIES
Online Access:	http://documents.worldbank.org/curated/en/2001/12/1660275/mode-foreign-entry-technology-transfer-foreign-direct-investment-policy http://hdl.handle.net/10986/19401

id	okr-10986-19401
recordtype	oai_dc
spelling	okr-10986-194012021-04-23T14:03:42Z Mode of Foreign Entry, Technology Transfer, and Foreign Direct Investment Policy Mattoo, Aaditya Olarreaga, Marcelo Saggi, Kamal BARGAINING POWER COMPETITIVE MARKETS DIRECT INVESTMENT DOMESTIC COMPETITORS DOMESTIC ECONOMY DOMESTIC FIRM DOMESTIC FIRMS DOMESTIC MARKET EVALUATION OF TECHNOLOGY FDI FOREIGN DIRECT INVESTMENT FOREIGN ENTRY FOREIGN EQUITY PARTICIPATION FOREIGN FIRM FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN OWNERSHIP HOST COUNTRIES HOST COUNTRY HOST-COUNTRY INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTS INTERNATIONAL ECONOMICS INVESTMENT POLICY LOCAL MARKET MARGINAL COST MARKET POWER MARKET SHARE MARKET STRUCTURE MARKET STRUCTURES POLICY RESEARCH POLITICAL ECONOMY R&D-INTENSIVE INDUSTRIES SERVICES MARKETS TECHNOLOGY DIFFUSION TECHNOLOGY TRANSFER TECHNOLOGY TRANSFERS TELECOMMUNICATIONS TELECOMMUNICATIONS SERVICES TRANSFER PRICES TRANSFERRING TECHNOLOGY TECHNOLOGY TRANSFER FOREIGN DIRECT INVESTMENTS INTERVENTION GOVERNMENT ROLE FOREIGN COMPANIES INVESTMENT POLICY Foreign direct investment can take place through the direct entry of foreign firms or the acquisition of existing domestic firms. Mattoo, Olarreaga, and Saggi examine the preferences of a foreign firm and the host country government with respect to these two modes of foreign direct investment in the presence of costly technology transfer. The tradeoff between technology transfer and market competition emerges as a key determinant of preferences. The authors identify the circumstances in which the choices of the government and the foreign firm diverge-and in which domestic welfare can be improved by restrictions on foreign direct investment that induce the foreign firm to choose the socially preferred mode of entry. 2014-08-15T19:49:08Z 2014-08-15T19:49:08Z 2001-12 http://documents.worldbank.org/curated/en/2001/12/1660275/mode-foreign-entry-technology-transfer-foreign-direct-investment-policy http://hdl.handle.net/10986/19401 English en_US Policy Research Working Paper;No. 2737 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	BARGAINING POWER COMPETITIVE MARKETS DIRECT INVESTMENT DOMESTIC COMPETITORS DOMESTIC ECONOMY DOMESTIC FIRM DOMESTIC FIRMS DOMESTIC MARKET EVALUATION OF TECHNOLOGY FDI FOREIGN DIRECT INVESTMENT FOREIGN ENTRY FOREIGN EQUITY PARTICIPATION FOREIGN FIRM FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN OWNERSHIP HOST COUNTRIES HOST COUNTRY HOST-COUNTRY INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTS INTERNATIONAL ECONOMICS INVESTMENT POLICY LOCAL MARKET MARGINAL COST MARKET POWER MARKET SHARE MARKET STRUCTURE MARKET STRUCTURES POLICY RESEARCH POLITICAL ECONOMY R&D-INTENSIVE INDUSTRIES SERVICES MARKETS TECHNOLOGY DIFFUSION TECHNOLOGY TRANSFER TECHNOLOGY TRANSFERS TELECOMMUNICATIONS TELECOMMUNICATIONS SERVICES TRANSFER PRICES TRANSFERRING TECHNOLOGY TECHNOLOGY TRANSFER FOREIGN DIRECT INVESTMENTS INTERVENTION GOVERNMENT ROLE FOREIGN COMPANIES INVESTMENT POLICY
spellingShingle	BARGAINING POWER COMPETITIVE MARKETS DIRECT INVESTMENT DOMESTIC COMPETITORS DOMESTIC ECONOMY DOMESTIC FIRM DOMESTIC FIRMS DOMESTIC MARKET EVALUATION OF TECHNOLOGY FDI FOREIGN DIRECT INVESTMENT FOREIGN ENTRY FOREIGN EQUITY PARTICIPATION FOREIGN FIRM FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN OWNERSHIP HOST COUNTRIES HOST COUNTRY HOST-COUNTRY INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTS INTERNATIONAL ECONOMICS INVESTMENT POLICY LOCAL MARKET MARGINAL COST MARKET POWER MARKET SHARE MARKET STRUCTURE MARKET STRUCTURES POLICY RESEARCH POLITICAL ECONOMY R&D-INTENSIVE INDUSTRIES SERVICES MARKETS TECHNOLOGY DIFFUSION TECHNOLOGY TRANSFER TECHNOLOGY TRANSFERS TELECOMMUNICATIONS TELECOMMUNICATIONS SERVICES TRANSFER PRICES TRANSFERRING TECHNOLOGY TECHNOLOGY TRANSFER FOREIGN DIRECT INVESTMENTS INTERVENTION GOVERNMENT ROLE FOREIGN COMPANIES INVESTMENT POLICY Mattoo, Aaditya Olarreaga, Marcelo Saggi, Kamal Mode of Foreign Entry, Technology Transfer, and Foreign Direct Investment Policy
relation	Policy Research Working Paper;No. 2737
description	Foreign direct investment can take place through the direct entry of foreign firms or the acquisition of existing domestic firms. Mattoo, Olarreaga, and Saggi examine the preferences of a foreign firm and the host country government with respect to these two modes of foreign direct investment in the presence of costly technology transfer. The tradeoff between technology transfer and market competition emerges as a key determinant of preferences. The authors identify the circumstances in which the choices of the government and the foreign firm diverge-and in which domestic welfare can be improved by restrictions on foreign direct investment that induce the foreign firm to choose the socially preferred mode of entry.
format	Publications & Research :: Policy Research Working Paper
author	Mattoo, Aaditya Olarreaga, Marcelo Saggi, Kamal
author_facet	Mattoo, Aaditya Olarreaga, Marcelo Saggi, Kamal
author_sort	Mattoo, Aaditya
title	Mode of Foreign Entry, Technology Transfer, and Foreign Direct Investment Policy
title_short	Mode of Foreign Entry, Technology Transfer, and Foreign Direct Investment Policy
title_full	Mode of Foreign Entry, Technology Transfer, and Foreign Direct Investment Policy
title_fullStr	Mode of Foreign Entry, Technology Transfer, and Foreign Direct Investment Policy
title_full_unstemmed	Mode of Foreign Entry, Technology Transfer, and Foreign Direct Investment Policy
title_sort	mode of foreign entry, technology transfer, and foreign direct investment policy
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2001/12/1660275/mode-foreign-entry-technology-transfer-foreign-direct-investment-policy http://hdl.handle.net/10986/19401
_version_	1764439769086951424

Mode of Foreign Entry, Technology Transfer, and Foreign Direct Investment Policy

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