The persistence of distance? The impact of technology on MNE motivations for foreign investment
Abstract
Why do firms go abroad when technology makes it possible to do business at a distance? We argue that the cost of distance differentially affects investment motivations across industries. We find support for this hypothesis in a study of U.S. inward and outward FDI. Knowledge seeking and efficiency seeking are the two most important explanations for international activity in information-intensive industries, reinforcing the value of intangible...
Paper Details
Title
The persistence of distance? The impact of technology on MNE motivations for foreign investment
Published Date
Jan 1, 2005
Journal
Volume
26
Issue
8
Pages
747 - 767
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