【3月18日】伟德平台怎么样雙周論壇講座通知

【主題】Quantifying Adaption Costs in Sequential FDI Location Choices: Evidence from German Firms

【報告人】朱愛勇，2014年獲得德國曼漢姆大學經濟學博士，現任武漢大學經濟與貿易學院經濟系助理教授，研究興趣包括産業組織實證研究、應用微觀經濟學和國際貿易，研究成果發表于Urban Studies, The Annals of Regional Science, China and World Economy等國際期刊。

【時間】3月18日（星期三）下午3:30-5:00

【地點】伟德平台怎么样會議室（中财大廈1032室）

【論文摘要】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.