Foreign direct investment, intra-firm trade and ownership structure

Authors
Konrad, KA Lommerud, KE
Citation
Ka. Konrad et Ke. Lommerud, Foreign direct investment, intra-firm trade and ownership structure, EUR ECON R, 45(3), 2001, pp. 475-494
Citations number
36
Categorie Soggetti
Economics
Journal title
EUROPEAN ECONOMIC REVIEW
ISSN journal
00142921 → ACNP
Volume
45
Issue
3
Year of publication
2001
Pages
475 - 494
Database
ISI
SICI code
0014-2921(200103)45:3<475:FDIITA>2.0.ZU;2-3
Abstract
Asymmetric information about true opportunity cost in trade between a multi national and its foreign affiliate can alleviate the hold-up problem in for eign direct investment. Selling shares in the affiliate to locals is also b eneficial because it increases the parent multinational's information rent that is protected from a host government's confiscatory taxation, (C) 2001 Elsevier Science B.V. All rights reserved.