【Trade/Empirical Seminar】Greenfield or Brownfield? FDI Entry Mode and Intangible Capital
2024/10/25
研討會日期 : 2024-10-25
時間 : 14:30
主講人 : Professor Haruka Takayama
地點 : Conference Room B110
主持人 : Professor Han Yang
演講者簡介 : Professor Haruka Takayama received her Ph.D. in Economics from the University of Virginia in 2022. She is an Assistant Professor of Economics at the University at Albany, SUNY. Her research interests are International Trade and Industrial Organization.
演講摘要 : When a multinational firm invests abroad, it can either establish a new facility (greenfield investment, GF) or purchase a local firm (cross-border merger and acquisition, M&A). Using a novel US firm-level dataset, I show that multinationals with higher levels of intangible capital systematically invest through GF rather than M&A. Motivated by this empirical result, I develop a general equilibrium search model of a multinational firm’s choice between M&A and GF. The quantitative evaluation of the model reveals that the world FDI patterns are suboptimal. In particular, policymakers in less developed economies can increase welfare by incentivizing M&A. By allowing highly productive multinationals to use local intangible capital, this policy raises aggregate productivity relative to the laissez-faire outcome.