scholarly journals Asymmetric effects of trade costs on entry modes: Firm level evidence

2012 ◽  
Vol 56 (2) ◽  
pp. 277-294 ◽  
Author(s):  
Ayça Tekin-Koru
Keyword(s):  
Trade Costs ◽  
Entry Modes ◽  
Firm Level ◽  
Asymmetric Effects

Innovation-Intensive FDI and Host Country Institutions

2018 ◽  
Author(s):  
Patrick J. W. Egan
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Host Country ◽  
Institutional Quality ◽  
Entry Modes ◽  
Host Countries ◽  
Firm Level ◽  
Investment Models ◽  
The Impact ◽  
Innovation Outcomes

This chapter moves beyond firm level attributes and economic motivations to consider the impact of host country institutions on investment models of multinationals in developing countries. It adopts a comparative institutionalist perspective, and utilizes country and firm level variables to measure governance. These measures are then employed to predict innovation outcomes. This chapter demonstrates that host country institutions affect the likelihood of local innovation taking place, and its intensity. A variety of measures of institutional coherence are developed, and address such diverse concepts as intellectual property protection, corruption, democracy, and bureaucratic quality. In addition, firm surveys are used to convey firm perceptions of institutional quality in host countries. The chapter includes a discussion of the literature on firm entry modes, and considers how other host country attributes, such as education and human capital, may influence innovation outcomes alongside institutions.

Institutional distance and entry mode choice by Brazilian firms

2014 ◽  
Vol 12 (2) ◽  
pp. 152-175 ◽  
Author(s):  
Gabriel Vouga Chueke ◽  
Felipe Mendes Borini
Keyword(s):  
Cultural Distance ◽  
Mode Choice ◽  
Entry Mode ◽  
Institutional Distance ◽  
Formal Institutions ◽  
Entry Modes ◽  
Firm Level ◽  
Content Type ◽  
Informal Institution ◽  
Establishment Mode

Purpose – The purpose of this paper is to examine the influence of institutional distance, firm and industry characteristics on the establishment mode strategy of Brazilian multinationals – the choice between an acquisition and a greenfield investment. Design/methodology/approach – The authors build upon the recently developed of Institutional Theory an analytical framework, decomposing the institutional distance between formal institutions (economic, financial, political, administrative, demographic, geographic and knowledge distance) and informal institution (cultural distance), and we used control variables related to firm and industry levels. Findings – The results suggest a possible association between entry by acquisition and factors related to the firm-level and formal institution (financial, political and demographic distance). Findings also suggest a strong relationship between greenfield investments and informal institution (cultural distance) and industry-level factors. Praticallimitations – The authors believe that the managers of Brazilian companies should use the variables adopted in this study as criteria to identify the factors that influence entry strategy abroad. Socialimplications – Another possible contribution concerns the scope of the government because results demonstrated the weight that formal institutions place on the entry process into foreign countries. Originality/value – This study contributes to the ongoing academic discussion regarding entry modes in different ways. First, this study contributes, given the novelty of its proposal: no quantitative studies were found to have analyzed establishment mode choice in Brazil. Another contribution is the finding related to the association between entry mode and institutional distance between countries.

scholarly journals Trade Policy is Real News: Theory and Evidence

2021 ◽  
Vol 2021 (1330) ◽  
pp. 1-60
Author(s):  
George Alessandria ◽  
◽  
Carter Mix ◽  
◽  
Keyword(s):  
Trade Policy ◽  
Economic Activity ◽  
Trade Costs ◽  
Trade Barriers ◽  
Firm Level ◽  
Hours Worked ◽  
Short Run ◽  
Aggregate Effects ◽  
Trade Growth ◽  
Over Time

We evaluate the aggregate effects of changes in trade barriers when these changes can be implemented slowly over time and trade responds gradually to changes in trade barriers because firm-level trade costs make exporting a dynamic decision. Our model shows how expectations of changes in trade barriers affect the economy. We find that while decreases in trade barriers increase economic activity, expectations of lower future trade barriers temporarily decrease investment, hours worked, and output. Further- more, canceling an expected decline in future trade barriers raises investment and output in the short run but substantially lowers medium-run growth. These effects are larger when the expected reform is bigger. In the data, we find that countries with more trade growth after the General Agreement on Tariffs and Trade (GATT) rounds decreased investment and hours worked in the years leading to the tariff cuts, as predicted by our model.

scholarly journals Markups, Quality, and Trade Costs

2020 ◽  
Vol 20 (36) ◽  
Author(s):  
Natalie Chen ◽  
Luciana Juvenal
Keyword(s):  
Strong Support ◽  
Trade Costs ◽  
Firm Level ◽  
Data Set ◽  
Unique Data ◽  
Ad Valorem

We investigate theoretically and empirically how exporters adjust their markups across destinations depending on bilateral distance, tariffs, and the quality of their exports. Under the assumption that trade costs are both ad valorem and per unit, our model predicts that markups rise with distance and fall with tariffs, but these effects are heterogeneous and are smaller in magnitude for higher quality exports. We find strong support for the predictions of the model using a unique data set of Argentinean firm-level wine exports combined with experts wine ratings as a measure of quality.

Marshallian Cross: An Alternative Justification and Related Issues

2013 ◽  
pp. 108-120 ◽  
Author(s):  
L. Grebnev
Keyword(s):  
Alternative Treatment ◽  
Supply And Demand ◽  
Firm Level ◽  
Economics Courses ◽  
Introductory Economics

The paper provides a justification of the laws of supply and demand using the concept of a marginal firm (technology) for the case of perfect competition.The ideological factor of excessive attention to the analysis of marginal parameters at the firm level in the introductory economics courses is discussed. The author connects these issues to the ideas of J. B. Clark and gives an alternative treatment of exploitation.

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