Foreign Direct Investment with Heterogeneous Entry Costs
2009/02/10
研討會日期 : 2009-02-10
時間 : 14:30
主講人 : 彭喜樞 先生
地點 : B110
演講者簡介 : 彭喜樞先生為Ph.D. in Economics，University of California, Berkeley (May 2009 expected)。其主要研究領域為International Economics、Industrial Organization、Macroeconomics。目前正申請本所研究職務中。
演講摘要 : This paper argues that multinational activity is not just a privilege of large firms. Models with fixed entry costs and heterogeneous productivity such as Melitz (2003) and Helpman et al (2004) predict that only firms above a certain size or productivity threshold should engage in international trade or foreign direct investment (FDI). I show that this prediction is not supported by the data: the share of Taiwanese multinationals with foreign investments in both developing and advanced economies is smoothly increasing in firm size. This fact can be explained by introducing entry cost heterogeneity to the model, which allows smaller firms to engage in multinational activity if their associated fixed cost is low. This framework also predicts that, relative to the standard model, (1) the effect of expanding foreign markets on multinational activity is reduced, because new entrants in foreign markets are on average smaller; (2) policies which reduce entry costs have a smaller effect on total sales and the degree of globalization.
