【主题】Quantifying Adaption Costs in Sequential FDI Location Choices: Evidence from German Firms
【报告人】朱爱勇，2014年获得德国曼汉姆大学经济学博士，现任武汉大学经济与贸易学院经济系助理教授，研究兴趣包括产业组织实证研究、应用微观经济学和国际贸易，研究成果发表于Urban Studies, The Annals of Regional Science, China and World Economy等国际期刊。
【论文摘要】When engaging in foreign direct investment (FDI) for the first time, multinational firms often incur large costs. They have to adapt to different business practices, ethical norms and regulations in a new country. Therefore, prior investment experience in a location can influence firms’ FDI decisions in subsequent periods, since firms do not need to pay the adaptation costs if they invest in the same location again. In this context, I develop a structural dynamic model of how firms make sequential decisions of where to invest. Using data on German firms’ FDI from 2002 to 2009, I estimate the model allowing for country-specific adaptation costs and firms’ heterogeneous preference towards location attributes. Estimation results suggest that adaptation costs are statistically and economically significant, ranging from 1.7% ? 34.3% of the average expected discounted profit of a firm. If adaptation costs were subsidized completely, I find that firms’ FDI location choices would change dramatically. In addition, the average expected discounted profit would increase by 20.6%, not only due to the reduction of adaptation costs, but more importantly, due to a better matching between firms and locations.