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dc.contributor.authorBárcena Ruiz, Juan Carlos ORCID
dc.contributor.authorGarzón San Felipe, María Begoña ORCID
dc.date.accessioned2012-01-18T13:40:49Z
dc.date.available2012-01-18T13:40:49Z
dc.date.issued2011
dc.identifier.urihttp://hdl.handle.net/10810/6234
dc.description.abstractThe literature on foreign direct investment has analyzed firms’ location decisions when they 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, here we 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 also 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. When firms do not invest in R&D on relocation, R&D discourages firms to relocate since the investment made by the firms that remain in the country partially offsets the labor cost advantage obtained by the firms that move their plants abroad.es
dc.description.sponsorshipFinancial support from Ministerio de Ciencia y Tecnología and FEDER (ECO2009-07939) and Departamento de Educación, Universidades e Investigación del Gobierno Vasco (IT- 223-07) is gratefully acknowledged.es
dc.language.isoenges
dc.relationinfo:eu-repo/grantAgreement/MICINN/ECO2009-07939
dc.relation.ispartofseriesIkerlanak 2011.52
dc.rightsinfo:eu-repo/semantics/openAccesses
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/3.0/*
dc.subjectrelocationes
dc.subjectR&Des
dc.subjecttrade unionses
dc.subjectsocial welfarees
dc.subjectimperfect competitiones
dc.titleRelocation and Investment in R&D by Firmses
dc.typeinfo:eu-repo/semantics/workingPaperes
dc.rights.holderAttribution-NonCommercial-ShareAlike 3.0 Unported*
dc.subject.jelD6
dc.subject.jelF16
dc.subject.jelJ51
dc.subject.jelL13
dc.identifier.repecRePEc:ehu:ikerla:201152es
dc.departamentoesFundamentos del análisis económico Ies_ES
dc.departamentoeuEkonomia analisiaren oinarriak Ies_ES
dc.subject.categoriaMICROECONOMICS
dc.subject.categoriaINDUSTRIAL ORGANIZATION
dc.subject.categoriaLABOR AND DEMOGRAPHIC ECONOMICS
dc.subject.categoriaINTERNATIONAL ECONOMICS


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Attribution-NonCommercial-ShareAlike 3.0 Unported
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-ShareAlike 3.0 Unported