英文摘要 |
We examine the strategic influence of international licensing on foreign direct investment (FDI) inflows by taking into account the informational and tariff-jumping advantages of FDI, which are the most common reasons why multinational firms undertake FDI. We obtain two main results as follows. First, provided that only the informational advantage of FDI is considered, international licensing can encourage FDI inflows if the variance of demand, innovation size, and fixed setup cost of FDI are small, while the foreign firm continues to select exporting otherwise. Second, when the two advantages of FDI are involved simultaneously, the effect of international licensing on FDI inflows is ambiguous, and de-pends upon the magnitudes of the fixed setup cost of FDI and the variance of demand in the domestic market. |