Tekin-Koru, Ayca (2009): Tariff-Jumping and the Form of FDI: Firm Level Evidence.
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This paper carries out an empirical analysis with rich, firm-level data on the activities of Swedish multinationals around the globe in manufacturing sectors from 1987 to 1998 to test the main conjectures of traditional trade and recent views of the effects of trade costs on foreign entry. The results of the empirical analysis show almost no evidence of tariff-jumping foreign entry. On the contrary, high tariffs reduce the likelihood of cross-border M&As as conjectured by recent studies. At best, tariff-jumping is a possibility in the case of greenfield FDI or for large, multiple affiliate firms doing business in low-tech industries.
|Item Type:||MPRA Paper|
|Original Title:||Tariff-Jumping and the Form of FDI: Firm Level Evidence|
|Keywords:||foreign direct investment, entry modes, and tariff-jumping|
|Subjects:||F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business
F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment; Long-Term Capital Movements
|Depositing User:||Ayça Tekin-Koru|
|Date Deposited:||25. Jan 2009 06:03|
|Last Modified:||13. Feb 2013 18:23|
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