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Switching between Domestic Market Activity, Export and FDI

Research output: Working paperResearch

Standard

Switching between Domestic Market Activity, Export and FDI. / Hiller, Sanne; Yalcin, Erdal.

Aarhus : Aarhus School of Business, Aarhus University, Department of Economics, 2009.

Research output: Working paperResearch

Harvard

Hiller, S & Yalcin, E 2009 'Switching between Domestic Market Activity, Export and FDI' Aarhus School of Business, Aarhus University, Department of Economics, Aarhus.

APA

Hiller, S., & Yalcin, E. (2009). Switching between Domestic Market Activity, Export and FDI. Aarhus: Aarhus School of Business, Aarhus University, Department of Economics.

CBE

Hiller S, Yalcin E. 2009. Switching between Domestic Market Activity, Export and FDI. Aarhus: Aarhus School of Business, Aarhus University, Department of Economics.

MLA

Hiller, Sanne and Erdal Yalcin Switching between Domestic Market Activity, Export and FDI. Aarhus: Aarhus School of Business, Aarhus University, Department of Economics. 2009., 49 p.

Vancouver

Hiller S, Yalcin E. Switching between Domestic Market Activity, Export and FDI. Aarhus: Aarhus School of Business, Aarhus University, Department of Economics. 2009.

Author

Hiller, Sanne ; Yalcin, Erdal. / Switching between Domestic Market Activity, Export and FDI. Aarhus : Aarhus School of Business, Aarhus University, Department of Economics, 2009.

Bibtex

@techreport{47d4e0e0af3311de97f7000ea68e967b,
title = "Switching between Domestic Market Activity, Export and FDI",
abstract = "Do firms maintain their chosen market serving mode over time if they are confronted with dynamic processes such as uncertain productivity? What are the determinants for switching between market serving modes over time? Within a partial equilibrium model which combines the proximity-concentration trade-off with a stochastic productivity evolution, we analyze the transition dynamics between domestic market serving, exporting and FDI. We find that a stochastic productivity development generates hysteresis, and thereby confirm a general real option result. Market serving mode switching is driven by country speci?c competition, irreversible fixed costs, productivity growth and volatility. Higher fixed costs and volatility increase the likeliness of serving mode continuity whereas a higher degree of competition and productivity growth raise the probability of serving mode switching.",
keywords = "Export, FDI, Market Serving Strategy, Real Option",
author = "Sanne Hiller and Erdal Yalcin",
year = "2009",
language = "English",
isbn = "9788778824004",
publisher = "Aarhus School of Business, Aarhus University, Department of Economics",
address = "Denmark",
type = "WorkingPaper",
institution = "Aarhus School of Business, Aarhus University, Department of Economics",

}

RIS

TY - UNPB

T1 - Switching between Domestic Market Activity, Export and FDI

AU - Hiller, Sanne

AU - Yalcin, Erdal

PY - 2009

Y1 - 2009

N2 - Do firms maintain their chosen market serving mode over time if they are confronted with dynamic processes such as uncertain productivity? What are the determinants for switching between market serving modes over time? Within a partial equilibrium model which combines the proximity-concentration trade-off with a stochastic productivity evolution, we analyze the transition dynamics between domestic market serving, exporting and FDI. We find that a stochastic productivity development generates hysteresis, and thereby confirm a general real option result. Market serving mode switching is driven by country speci?c competition, irreversible fixed costs, productivity growth and volatility. Higher fixed costs and volatility increase the likeliness of serving mode continuity whereas a higher degree of competition and productivity growth raise the probability of serving mode switching.

AB - Do firms maintain their chosen market serving mode over time if they are confronted with dynamic processes such as uncertain productivity? What are the determinants for switching between market serving modes over time? Within a partial equilibrium model which combines the proximity-concentration trade-off with a stochastic productivity evolution, we analyze the transition dynamics between domestic market serving, exporting and FDI. We find that a stochastic productivity development generates hysteresis, and thereby confirm a general real option result. Market serving mode switching is driven by country speci?c competition, irreversible fixed costs, productivity growth and volatility. Higher fixed costs and volatility increase the likeliness of serving mode continuity whereas a higher degree of competition and productivity growth raise the probability of serving mode switching.

KW - Export

KW - FDI

KW - Market Serving Strategy

KW - Real Option

M3 - Working paper

SN - 9788778824004

BT - Switching between Domestic Market Activity, Export and FDI

PB - Aarhus School of Business, Aarhus University, Department of Economics

CY - Aarhus

ER -