Relocation and investment in R&D by firms
Autor(a) principal: | |
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Data de Publicação: | 2014 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.5/15714 |
Resumo: | The literature on foreign direct investment has analyzed corporate location decisions when firms invest in R&D to reduce production costs. Such firms may set up new plants in other developed countries while maintaining their domestic plants. In contrast, we here consider firms that close down their domestic operations and relocate to countries where wage costs are lower. Thus, we assume that firms may reduce their production costs by investing in R&D and likewise by moving their plants abroad. We show that these two mechanisms are complementary. When a firm relocates it invests more in R&D than when it does not change its location and, therefore, its production cost is lower in the first case. As a result, investment in R&D encourages firms to relocate. |
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Relocation and investment in R&D by firmsRelocationR&DSocial welfareImperfect competitionThe literature on foreign direct investment has analyzed corporate location decisions when firms invest in R&D to reduce production costs. Such firms may set up new plants in other developed countries while maintaining their domestic plants. In contrast, we here consider firms that close down their domestic operations and relocate to countries where wage costs are lower. Thus, we assume that firms may reduce their production costs by investing in R&D and likewise by moving their plants abroad. We show that these two mechanisms are complementary. When a firm relocates it invests more in R&D than when it does not change its location and, therefore, its production cost is lower in the first case. As a result, investment in R&D encourages firms to relocate.Springer VerlagRepositório da Universidade de LisboaBárcena-Ruiz, Juan CarlosBegoña Garzón, María2018-06-25T12:40:38Z2014-042014-04-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/15714engBárcena-Ruiz, Juan Carlos e María Begoña Garzón (2014). "Relocation and investment in R&D by firms". Portuguese Economic Journal, 13(1):25-381617-982X (print)10.1007/s10258-014-0096-4metadata only accessinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-05-14T01:30:34Zoai:www.repository.utl.pt:10400.5/15714Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:01:19.091643Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Relocation and investment in R&D by firms |
title |
Relocation and investment in R&D by firms |
spellingShingle |
Relocation and investment in R&D by firms Bárcena-Ruiz, Juan Carlos Relocation R&D Social welfare Imperfect competition |
title_short |
Relocation and investment in R&D by firms |
title_full |
Relocation and investment in R&D by firms |
title_fullStr |
Relocation and investment in R&D by firms |
title_full_unstemmed |
Relocation and investment in R&D by firms |
title_sort |
Relocation and investment in R&D by firms |
author |
Bárcena-Ruiz, Juan Carlos |
author_facet |
Bárcena-Ruiz, Juan Carlos Begoña Garzón, María |
author_role |
author |
author2 |
Begoña Garzón, María |
author2_role |
author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
Bárcena-Ruiz, Juan Carlos Begoña Garzón, María |
dc.subject.por.fl_str_mv |
Relocation R&D Social welfare Imperfect competition |
topic |
Relocation R&D Social welfare Imperfect competition |
description |
The literature on foreign direct investment has analyzed corporate location decisions when firms invest in R&D to reduce production costs. Such firms may set up new plants in other developed countries while maintaining their domestic plants. In contrast, we here consider firms that close down their domestic operations and relocate to countries where wage costs are lower. Thus, we assume that firms may reduce their production costs by investing in R&D and likewise by moving their plants abroad. We show that these two mechanisms are complementary. When a firm relocates it invests more in R&D than when it does not change its location and, therefore, its production cost is lower in the first case. As a result, investment in R&D encourages firms to relocate. |
publishDate |
2014 |
dc.date.none.fl_str_mv |
2014-04 2014-04-01T00:00:00Z 2018-06-25T12:40:38Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.5/15714 |
url |
http://hdl.handle.net/10400.5/15714 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Bárcena-Ruiz, Juan Carlos e María Begoña Garzón (2014). "Relocation and investment in R&D by firms". Portuguese Economic Journal, 13(1):25-38 1617-982X (print) 10.1007/s10258-014-0096-4 |
dc.rights.driver.fl_str_mv |
metadata only access info:eu-repo/semantics/openAccess |
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metadata only access |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Springer Verlag |
publisher.none.fl_str_mv |
Springer Verlag |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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