Erdal Yalcin ()
Additional contact information
Erdal Yalcin: International Economics, Postal: Eberhard Karls University, Nauklerstr. 47, 72074 Tübingen, Germany
Abstract: The underlying model combines the proximity-concentration trade-off framework with the real option approach. In contrast to the latest trade models, uncertainty is introduced as a continuous phenomenon. Furthermore, the model contains the innovation of comparing two option values simultaneously. The implementation of goods price uncertainty turns out to reduce the probability of entering a new market as an exporter. FDI becomes the optimal entry mode with increasing uncertainty. Additionally, the model is extended by implementing exchange rate uncertainty in a period of appreciation
Keywords: Export; FDI; Uncertainty; Real Option Approach
JEL-codes: D81; D92; F17; F21; F23
59 pages, March 18, 2008
Full text files
08-3_ey.pdf![]()
Questions (including download problems) about the papers in this series should be directed to Helle Vinbaek Stenholt ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:aareco:2008_003This page generated on 2024-09-13 22:19:12.