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

Chwo Ming J. Yu, Kiyohiko Ito

Research output: Contribution to journalJournal Article peer-review

145 Scopus citations

Abstract

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.

Original languageEnglish
Pages (from-to)449-460
Number of pages12
JournalJournal of International Business Studies
Volume19
Issue number3
DOIs
StatePublished - 01 09 1988
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 1988, Academy of International Business.

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