| 来源类型 | Working Paper
|
| 规范类型 | 报告
|
| DOI | 10.3386/w19751
|
| 来源ID | Working Paper 19751
|
| Export or Merge? Proximity vs. Concentration in Product Space |
| Marc-Andreas Muendler
|
| 发表日期 | 2013-12-19
|
| 出版年 | 2013
|
| 语种 | 英语
|
| 摘要 | This paper proposes a proximity-concentration tradeoff in product space as a determinant of horizontal foreign direct investment (FDI). Firms that enter a foreign market by exporting are able to capture consumer surplus from introducing a differentiated product with characteristics that the incumbent cannot match. In relatively globalized product space, in contrast, consumers perceive an entrant's difference to existing products as less pronounced, so a consumer's virtual distance costs in product space are lower and a merger with an incumbent (horizontal FDI) offers pricing power that allows the entrant to extract consumer rent. Lower physical trade costs of shipping make Bertrand price competition fiercer in differentiated product space and can provide an additional incentive for a merger. A basic product space model with a linear Hotelling setup can therefore explain why FDI has become more frequent in recent periods in the presence of falling trade costs. Cross-border merger and acquisitions data support the model's prediction that horizontal FDI grows relatively faster than exports in differentiated goods industries, compared to homogeneous-goods industries. |
| 主题 | International Economics
; Trade
; International Factor Mobility
; Industrial Organization
; Market Structure and Firm Performance
|
| URL | https://www.nber.org/papers/w19751
|
| 来源智库 | National Bureau of Economic Research (United States)
|
| 引用统计 |
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/577425
|
推荐引用方式
GB/T 7714 |
Marc-Andreas Muendler. Export or Merge? Proximity vs. Concentration in Product Space. 2013.
|
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