This paper empirically tests the impact of oligopolistic reaction and some firm–related and host country–related factors on FDI activities in the U.S. tire and textile industries. The results reveal that in an oligopolistic industry, firms' motivation of FDI is based on the behavior of rivals as well as host country–related and firm–related factors, while in a more competitively structured industry, firms do not actively counter the competitors' FDI activities.

background

https://link.springer.com/content/pdf/10.1057%2Fpalgrave.jibs.8490391.pdf

International big business, 1957–67

Oligopolistic Reaction and Foreign Direct Investment: The Case of the U.S. Tire and Textiles Industries

SUMMARY

The paper analyses the growth and profitability of the world's largest firms by reference to their size, degree of multinationality, main industry of operation, nationality of ownership and research intensity. The influence of size of firm on growth is stable but weak, its influence on profitability is negligible. Industry of operation has generally strongly influenced growth but the effect on profitability is not consistent amongst different time periods and samples. Division by research intensities of firms is significant in analysing growth, less in the analysis of profitability. Degree of multinationality does not contribute consistently to the explanatory power of the full equation for either dependent variable but nationality of ownership is a consistently powerful explanatory factor.

ZUSAMMENFASSUNG

Der vorliegende Artikel analysiert Wachstum und Ertrag der grossten Firmen der Welt in bezug auf Grosse, Grad der Multinationalitat, Branche, Nationalitat der Mutterfirma und Forschungsintensitat. Der Einfluss der Firmengrosse auf das Wachstum ist stabil aber schwach, ihr Einfluss auf die Ertragsfahigkeit unwichtig. Im allgemeinen hangt das Wachstum stark mit der Branche zusammen, wahrend der Brancheneinfluss auf den Ertrag in den verschiedenen Perioden und Stichproben uneinheitlich ist. Die Klassifiziemng der Firmen nach ihrer Forschungsintensitat ist signifikant fur die Analyse. des Wachstums, aber weniger signifikant fur die Analyse des Ertrags. Der Grad der Multinationalitat leistet keinen eindeutigen Beitrag zur Erklarung der beiden abhangigen Variablen Wachstum und Ertrag, die Nationalitat der Mutterfirma ist hierfur jedoch wichtig.

RESUME

Cet article analyse la croissance et profitabilite des entreprises les plus grandes du monde en se referant ȩ leur grandeur, au degre de multinationalite, aux operations industrielles principales, ȩ la nationalite de propriete et ȩ I'intensite de recherche. L'influence de la grandeur d'une entreprise sur la croissance est stable mais faible; son influence sur la profitabilite est negligeable. Generalement l'activite industrielle influence fortement la croissance, mais l'effet sur la profitabilite n'est pas consistent parmis les periodes et sondages differents. La classification des entreprises selon leur intensite de recherche est significative pour l'analyse de la croissance, mais moins concluante pour l'analyse de la profitabilite. Le degre de multinationalite ne contribue pas de facon consistente au pouvoir explicatif de l'equation complete pour ni l'une ni l'autre variable dependante, mais la nationalite de propriete est de facon consistente un important facteur explicatif.

An Analysis of the Growth and Profitability of the World's Largest Firms 1972 to 1977

In‐house r&d, imported technology, and firm size: lessons from indian experience

The recent growth of the largest us multinationals*: the recent growth of the largest us multinationals

Since the seminal work of Blanchard and Katz, it has been widely believed that interstate migration causes state-level employment rates in the United States to revert rapidly to normal following a regional employment shock. This paper identifies two sources of bias in conventional estimates of the dynamics of regional labor markets: small sample bias stemming from the use of short time series, and measurement error in survey based series for employment status at the state level. Estimates that use more reliable series and correct for these biases suggest little or no mean reversion in state-level employment rates. Thus the perception that U.S. regional labor markets are highly flexible appears to be incorrect.

International big business, 1957–67

Citations

Oligopolistic Reaction and Foreign Direct Investment: The Case of the U.S. Tire and Textiles Industries

An Analysis of the Growth and Profitability of the World's Largest Firms 1972 to 1977

In‐house r&d, imported technology, and firm size: lessons from indian experience

The recent growth of the largest us multinationals*: the recent growth of the largest us multinationals

Convergence and Stability in U.S. Employment Rates

Related Papers (3)

Education is big Business

The big business of medicine.

In International business