Publication:
Technological Asymmetry Among Foreign Investors and Mode of Entry

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dc.contributor.authorSaggi, Kamal
dc.contributor.authorSmarzynska Javorcik, Beata
dc.date.accessioned2013-08-05T13:37:30Z
dc.date.available2013-08-05T13:37:30Z
dc.date.issued2004-01
dc.description.abstractHow does the preferred entry mode of foreign investors depend on their technological capability relative to that of their rivals? The authors develop a simple model of entry mode choice and evaluate its main testable implication using data on foreign investors in Eastern European countries and the successor states of the former Soviet Union. The model considers competition between two asymmetric foreign investors and captures the following tradeoffs: while a joint venture helps a foreign investor secure a better position in the product market compared with its rival, it also requires that profits be shared with the local partner. The model predicts that the efficient foreign investor is less likely to choose a joint venture and more likely to enter directly relative to the inefficient investor. The authors' empirical analysis supports this prediction: foreign investors with more sophisticated technologies and marketing skills (relative to other firms in their industry) tend to prefer direct entry to joint ventures. This empirical finding is robust to controlling for host country-specific effects and other commonly cited determinants of entry mode.en
dc.identifierhttp://documents.worldbank.org/curated/en/2004/01/3207944/technological-asymmetry-among-foreign-investors-mode-entry
dc.identifier.doi10.1596/1813-9450-3196
dc.identifier.urihttps://hdl.handle.net/10986/14789
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, D.C.
dc.relation.ispartofseriesPolicy Research Working Paper;No.3196
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectJOINT VENTURES
dc.subjectTECHNOLOGIES
dc.subjectCOMMODITY MARKETS
dc.subjectMARKETING TECHNIQUES ASSETS
dc.subjectBUSINESS ENVIRONMENT
dc.subjectCOMMON PROPERTY
dc.subjectCOMPANY
dc.subjectCOMPETITORS
dc.subjectCONSUMERS
dc.subjectCOURNOT COMPETITION
dc.subjectDECISION-MAKING
dc.subjectDEVELOPED COUNTRIES
dc.subjectDIVERSIFICATION
dc.subjectDIVERSIFIED COMPANIES
dc.subjectDUOPOLY
dc.subjectECONOMIC ANALYSIS
dc.subjectECONOMIC BEHAVIOR
dc.subjectEMPIRICAL ANALYSIS
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL STUDIES
dc.subjectEQUILIBRIUM
dc.subjectEXPENDITURES
dc.subjectEXPORTS
dc.subjectFIRM SIZE
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN FIRMS
dc.subjectFOREIGN INVESTMENT
dc.subjectFOREIGN INVESTORS
dc.subjectFOREIGN OWNERSHIP
dc.subjectFOREIGN SALES
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGOVERNMENT REGULATIONS
dc.subjectHUMAN CAPITAL
dc.subjectIMPORTS
dc.subjectINTELLECTUAL PROPERTY RIGHTS
dc.subjectINTERNATIONAL TRADE
dc.subjectJOINT VENTURES
dc.subjectLABOR COSTS
dc.subjectLEGISLATION
dc.subjectMARGINAL COST
dc.subjectMARKET ENTRY
dc.subjectMULTINATIONAL ENTERPRISE
dc.subjectMULTINATIONAL ENTERPRISES
dc.subjectOWNERSHIP STRUCTURE
dc.subjectPOLICY MAKERS
dc.subjectPROFIT MAXIMIZATION
dc.subjectPROPERTY RIGHTS
dc.subjectPURCHASING POWER
dc.subjectSUPPLIERS
dc.subjectTAX RATES
dc.subjectTECHNOLOGY TRANSFER
dc.subjectTOTAL OUTPUT
dc.subjectTRANSITION ECONOMIES
dc.subjectWTO
dc.titleTechnological Asymmetry Among Foreign Investors and Mode of Entryen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleTechnological Asymmetry among Foreign Investors and Mode of Entry
okr.date.doiregistration2025-04-10T10:48:53.478185Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2004/01/3207944/technological-asymmetry-among-foreign-investors-mode-entry
okr.globalpracticeTransport and ICT
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid490511468763218046
okr.identifier.doi10.1596/1813-9450-3196
okr.identifier.externaldocumentum000009486_20040420095339
okr.identifier.internaldocumentum3207944
okr.identifier.reportWPS3196
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2004/04/20/000009486_20040420095339/Rendered/PDF/wps3196Tech.pdfen
okr.region.administrativeEurope and Central Asia
okr.topicPrivate Sector Development::Small and Medium Size Enterprises
okr.topicFinance and Financial Sector Development::Microfinance
okr.topicEconomic Theory and Research
okr.topicInternational Terrorism and Counterterrorism
okr.topicEnvironmental Economics and Policies
okr.topicInformation and Communication Technologies::ICT Policy and Strategies
okr.topicEnvironment
okr.unitOff of Sr VP Dev Econ/Chief Econ (DECVP)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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