Foreign Direct Investment of Uncertainty、Entry Mode and R&D investment

• Main Authors: Yi-jen Tsai, 蔡宜臻
• Other Authors: Jiunn-Rong Chiou
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/8u8myq

博士 === 國立中央大學 === 產業經濟研究所 === 96 === This paper is about FDI. And it is to compose with three papers. One is about of uncertainty. The purpose of this paper is to examine when foreign firm has cost uncertainty then host government should make separating or pooling tax policy. Then the two of this paper is to examine when foreign firms want to entry host country what is the best entry mode. And foreign firms entry mode can FDI、export or licensing. The last of this paper is purpose of this paper is to examine whether a lower labor cost in the host country will negatively affect a multinational firm’s R&D investment. An imperfectly competitive market structure and a production function with labor and technology inputs are utilized in this paper. The main findings in this paper are as follows. (1) If labor and technology were complementary inputs, the multinational firm will increase its R&D investment as it invests outward. (2) If labor and technology were substitute inputs, the impact of outward direct investment on multinational firm’s R&D investment is ambiguous. It is shown that the lower the host country’s wage or the larger the market size, it is more likely that the multinational firm’s R&D investment will decrease due to outward direct investment. (3) In the case that a host country’s firm also invests in R&D, its R&D investment will decrease while facing a foreign direct investment as labor and technology are complementary. On the contrary, as labor and technology are substitute, the host firm’s R&D investment may increase while facing a foreign direct investment.