Strategic Foreign Direct Investment in Developing Countries under Demand Uncertainty: Commitment vs. Flexibility

Strategic Foreign Direct Investment in Developing Countries under Demand Uncertainty: Commitment vs. Flexibility

The paper analyzes the effect of expected future demand on the investment decisions of multinational enterprises. In particular, I explore the issue of the timing of switching between exporting and FDI in the host developing country and explicitly incorporate the firm’s attitude toward risk in the m...

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Main Author: Hea-Jung Hyun
Format: Article
Language:English
Published: Korea Institute for International Economic Policy 2012-03-01
Series:East Asian Economic Review
Subjects:
Foreign Direct Investment
Developing Countries
Uncertainty
Switching Time
Commitment
Flexibility
Online Access:http://dx.doi.org/10.11644/KIEP.JEAI.2012.16.1.242
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spelling doaj-6ffa6ad394ea4bcd848befeaa7307e722020-11-25T00:10:03ZengKorea Institute for International Economic PolicyEast Asian Economic Review2508-16402508-16672012-03-011612566http://dx.doi.org/10.11644/KIEP.JEAI.2012.16.1.242Strategic Foreign Direct Investment in Developing Countries under Demand Uncertainty: Commitment vs. Flexibility Hea-Jung Hyun 0Department of International Studies, Kyung Hee UniversityThe paper analyzes the effect of expected future demand on the investment decisions of multinational enterprises. In particular, I explore the issue of the timing of switching between exporting and FDI in the host developing country and explicitly incorporate the firm’s attitude toward risk in the model. The model demonstrates that the optimal time for switching to FDI depends on the expected future demand and the degree of its uncertainty.http://dx.doi.org/10.11644/KIEP.JEAI.2012.16.1.242Foreign Direct InvestmentDeveloping CountriesUncertaintySwitching TimeCommitmentFlexibility
collection DOAJ
language English
format Article
sources DOAJ
author Hea-Jung Hyun
spellingShingle Hea-Jung Hyun
Strategic Foreign Direct Investment in Developing Countries under Demand Uncertainty: Commitment vs. Flexibility
East Asian Economic Review
Foreign Direct Investment
Developing Countries
Uncertainty
Switching Time
Commitment
Flexibility
author_facet Hea-Jung Hyun
author_sort Hea-Jung Hyun
title Strategic Foreign Direct Investment in Developing Countries under Demand Uncertainty: Commitment vs. Flexibility
title_short Strategic Foreign Direct Investment in Developing Countries under Demand Uncertainty: Commitment vs. Flexibility
title_full Strategic Foreign Direct Investment in Developing Countries under Demand Uncertainty: Commitment vs. Flexibility
title_fullStr Strategic Foreign Direct Investment in Developing Countries under Demand Uncertainty: Commitment vs. Flexibility
title_full_unstemmed Strategic Foreign Direct Investment in Developing Countries under Demand Uncertainty: Commitment vs. Flexibility
title_sort strategic foreign direct investment in developing countries under demand uncertainty: commitment vs. flexibility
publisher Korea Institute for International Economic Policy
series East Asian Economic Review
issn 2508-1640
2508-1667
publishDate 2012-03-01
description The paper analyzes the effect of expected future demand on the investment decisions of multinational enterprises. In particular, I explore the issue of the timing of switching between exporting and FDI in the host developing country and explicitly incorporate the firm’s attitude toward risk in the model. The model demonstrates that the optimal time for switching to FDI depends on the expected future demand and the degree of its uncertainty.
topic Foreign Direct Investment
Developing Countries
Uncertainty
Switching Time
Commitment
Flexibility
url http://dx.doi.org/10.11644/KIEP.JEAI.2012.16.1.242
work_keys_str_mv AT heajunghyun strategicforeigndirectinvestmentindevelopingcountriesunderdemanduncertaintycommitmentvsflexibility
_version_ 1725409553868128256

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