外商投资与东道国市场结构：以英国为例【外文翻译】.doc

1、1本科毕业论文外文翻译外文文献译文标题外商投资与东道国市场结构以英国为例资料来源工业组织评论作者NIGELDRIFFIELD一引言本文主要研究外商直接投资对东道国产业集中度的影响。人们普遍认为跨国公司在东道国中通过利用规模经济、国际水平与垂直整合以及劳动力分布等行为来加深其垄断现象。然而本文则认为存在着一种竞争假设使外商直接投资更有可能通过减少东道国龙头企业的市场份额来降低它的产业集中度。本文的具体构造如下第二章通过理论分析和实证研究，概述了外商直接投资和市场集中度之间可能存在的关系。而这里的观点、结论是相互矛盾的，所以第二章得到的结果会与前人的研究做对比。第三章根据产业变化的长期集中度水平以

2、及变化的一组解释变量来建立传统的模型用于研究产业集中度的变化。第四节就如何合理的发展外商直接投资及其在产业中的分布给出建议，并讨论了数据的一般术语。第五章提供了计量经济分析并在第六章给出结论。二外商直接投资与市场集中度迄今为止，研究外商直接投资与市场集中度的模型大多都是十分简易的它们通常涉及到横截面方程，将外商直接投资作为影响市场集中度的重要因素之一。然而，这些并不完整的假设，在外商直接投资对市场结构变化的理论分析中渐渐的被改善了。如BLOMSTROM1986,BOURLAKIS1987ANDCHO1990就是这种方法的延伸。在最初的外商直接投资对市场结构的影响中CAVES,1996研究认为，

3、跨国公司将会降低产业集中度并增加竞争力。而这种观点通常建立在外商直接投资是作为市场失灵的结果而产生的基础上。在此基础上，外商投资将会克服东道国的贸易和其他进入壁垒。而这一假设在基于跨国公司有可能进入东道国并成为比国内企业规模更大的公司的基础上被质疑（如海默，1966），并且由于其本身的性质，外商直接投资可能被视为当地寡头企业的竞争对手GRAHAM,1978。事实上，在分析外商直接投资的所有权优势中表明外商直接投资的主要动机之一就是要在东道国产生租金垄断HYMER1966ANDCOWLINGANDSUGDEN1987认为外商直接投资会直接导致东道国市场集中程度增加。他们认为外来投资加剧了垄断的问

4、题，如跨国公司通过操控国际分工来寻求产生最大规2模经济。因此，跨国公司将会取代国内生产者，通过增加行业的最小有效规模，并因此增加市场集中度和减少竞争。COWLINGANDSUGDEN1987则认为这种现象在一定范围内会使得东道国的垄断定价增加。但是在最近的一些基于“新的”理论的FDI学术文章中解释了外商直接投资在战略中的相互作用，如SMITH1987,ROWTHORN1991ORMOTTA1994在这种理论中，它假定跨国公司的活动与寡头垄断有着紧密联系。因此，外商直接投资的流动至少部分能够进入壁垒这些理论也认为垄断东道国的租金是进行对外直接投资中的一个潜在的重要动机，如BUCKLEYANDCA

5、SSON1998。不过，这里只有一些有限的实证文献能直接支持这种论点。HIRSCHEY1982发现美国的一些企业进行对外直接投资是为了获取国外市场的垄断租金，并以此来支持前面的观点。而LALL1979报告说，外商直接投资的行为增加了马来西亚产业的集中度。有一些人在外商直接投资与东道国的市场集中度的关系中做了一些研究，但是这一般只局限于证实外资所有权的集中程度，如BOURLAKIS1987,WILMORE1989,BLOMSTROM1986这些文章仅仅解释了外来投资和市场集中度之间的正相关关系，表明外来投资确实增加了垄断的问题。然而，与其他因素相比外商直接投资是否是垄断问题的决定因素还是需要继续

6、商榷的。三集中度变化模型这里的模型是根据现有文献中确定的相关因素来建立的集中度模型。考虑到一般产业集中度的变化，本文采用DAVIESANDGEROSKI1997,KAMBHAMPATI1998,ORROSENBAUM1993创立模型，然后提出以下集中度变化的规格建议。集中度的变化是由长期运行的集中度水平的变化而决定的，从长远来说，它与过去一段时间存在水平偏差。（1）集中度水平的决定因素在CURRYANDGEORGE1983ROSENBAUM1993的许多研究中以及ROSENBAUM1993列举的美国例子表明，规模经济和广告的加强会增强市场的集中度，而DAVIESANDGEROSKI1997研究

7、发现研发、广告、和资本性支出与市场集中度间存在着正相关性。GEROSKI和POMROY1990证明资本密集度和市场规模是产业结构变化的重要因素。此外，ECKARD1990表明，生产力和经济规模的增加，将会增加市场的集中度。与这些联系在一起，我们观察到不同行业表现出不同的经济体系规模。在衡量外商投资的过程中，主要包括测量外商投资与产业集中度的基本假设之间的关系。BLOMSTROM1986,3BOURLAKIS1987ORWILLMORE1989认为在一定程度上，外商投资与产业集中度存在一定的关系。然而，在后面的章节里，本文还将研究外资在产业变化集中度中的渗透效应。最后，一个衡量区域集中包括。高水

8、平的区域集中度往往遭遇结构性贸易壁垒，如有限公司获得原材料将其他投入时会受到长期的纵向约束。这样可以得到平衡集中度水平方面的观察值的一套解释性变量。（2）调整的速度和集中度变化这里提出的模型仅仅是确定引起市场集中度变化的相关因素，因此讨论的重点简要的转向到了这方面的前期工作。文献中关于集中度变化的决定因素，往往把重点放在基于技术进步的竞争演变，例如ROSENBAUM1993从这些研究中得出的重要结论是，短期内市场集中度是引起市场长期集中度水平变化的重要决定因素。作为这样一个框架，它的产业集中度的起点水平在任何后续调整里都是一个重要的决定因素，特别是在规定的长时间偏差内。然而，KAMBHAMPA

9、TI（1998）认为，不同行业长期集中在一个统一的利率里是不怎么可能的，因此任何旨在施加的估计，对不同行业的标准或平均值在可能是无效的。四计量经济分析这里采用的估计程序，在一些细微的概述上是由SEVESTRE和TROGNON1996提出的。由于估计等式的左边列入了该模型面板框架内的估计，因此普通最小二乘法不能适用。相反，由ARELLANOANDBOND1988,1991采用的一个使用广义矩阵方法估计的工具变量是可以采取的。这种方法是很常见的，例如在劳动力的需求建模，假设非线性调整过程里。如想进一步了解它，可以参考HAMERMESH（1995）五结论采用集中度测量的方法准确的表明了外商直接投资与

10、产业集中度的关系。在沉没成本高的产业中，外来投资减少了东道国产业集中的效果。因此，外商直接投资项可以被视为减少垄断问题的一个机制。然而外商直接投资在低沉没成本的产业中对市场结构的影响是消极的。GEROSKI1995的研究报告里也赞同这种结论，他认为跨国公司能够克服那些国内潜在进入者不能够克服的进入壁垒。DRIFFIELDANDMUNDAY1998也同样提出了类似的报告结果，他们认为外商直接投资能够投资减少国内龙头企业的盈利能力。反过来观察其他市场集中度的影响因素，我们发现得出的结果都是符合先前预期的。如研发力度，经济规模，资本密集度和区域集中度都跟市场集中度呈现正相关性，同时广告的效果对市场集

11、中度，同样呈现积极影响，并且这些因素都是显著的，4而在高研发密度行业中，技术竞争比广告的作用效果更显著。5外文文献原文TITLEINWARDINVESTMENTANDHOSTCOUNTRYMARKETSTRUCTURETHECASEOFTHEUKMATERIALSOURCEREVIEWOFINDUSTRIALORGANIZATIONAUTHORNIGELDRIFFIELDIINTRODUCTIONTHISPAPEREXAMINESTHEIMPACTTHATFOREIGNDIRECTINVESTMENTFDIHASONHOSTCOUNTRYINDUSTRYCONCENTRATIONITSEEMS

12、TOBENOWGENERALLYACCEPTEDTHATMULTINATIONALENTERPRISESMNESACTTOEXACERBATETHEMONOPOLYPROBLEMINTHEHOSTCOUNTRY,THROUGHTHEEXPLOITATIONOFECONOMIESOFSCALE,INTERNATIONALVERTICALANDHORIZONTALINTEGRATIONANDTHEDIVISIONOFLABOURTHEREISHOWEVERACOMPETINGHYPOTHESIS,WHICHTHISPAPERSUPPORTS,THATINWARDFDIISMORELIKELYTOR

13、EDUCECONCENTRATIONBYREDUCINGTHEMARKETSHARESOFTHELEADINGHOSTCOUNTRYFIRMSTHISPAPERISCONSTRUCTEDASFOLLOWSSECTIONIIOUTLINESTHEPOSSIBLERELATIONSHIPSBETWEENFDIANDMARKETCONCENTRATION,BASEDONTHEORETICALANALYSISANDEMPIRICALSTUDIESTHEEVIDENCEHEREISRATHERCONTRADICTORY,ANDSOSECTIONIICONTRASTSTHEFINDINGSOFPREVIO

14、USWORKSECTIONIIIDEVELOPSAMODELOFCONCENTRATIONCHANGEALONGTRADITIONALLINES,BASEDONCHANGESINTHELONGRUNLEVELOFCONCENTRATION,ASWELLASCHANGESINASETOFEXPLANATORYVARIABLESSECTIONIVADDRESSESTHEPROBLEMSOFDEVELOPINGSUITABLEMEASURESFORINWARDFDI,ANDFORINDUSTRYCONCENTRATION,ANDDISCUSSESTHEDATAINGENERALTERMSSECTIO

15、NVPROVIDESTHEECONOMETRICANALYSIS,ANDSECTIONVICONTAINSTHECONCLUSIONSIIFDIANDMARKETCONCENTRATIONMODELSTHATHAVEHITHERTOTESTEDFORARELATIONSHIPBETWEENFDIANDMARKETCONCENTRATIONHAVEBEENRELATIVELYSTRAIGHTFORWARDTHEYTYPICALLYINVOLVE,FOREXAMPLE,ACROSSSECTIONALEQUATIONINLEVELS,WITHAMEASUREOFFDIASONEOFTHEDETERM

16、INANTSOFCONCENTRATIONHOWEVER,THESEDONOTFULLYADDRESSTHEHYPOTHESESTHATAREDEVELOPEDINTHETHEORETICALANALYSISOFTHEIMPACTSOFFDIONCHANGESINMARKETSTRUCTUREFOREXAMPLESOFTHISAPPROACH,SEEBLOMSTROM1986,BOURLAKIS1987ANDCHO1990INITIALWORKONTHELIKELYIMPACTSOFFDIONMARKETSTRUCTURESEECAVES,1996FORASURVEYSUGGESTEDTHAT

17、MNESWOULDACTTOREDUCECONCENTRATION,ANDINCREASECOMPETITIONTHISWASBASEDONANALYSISWHICHSUGGESTEDTHATFDIOCCURREDASARESULTOFMARKETFAILURE,ANDASSUCHWOULD6OVERCOMETRADEANDOTHERENTRYBARRIERSINTHEHOSTCOUNTRYTHISASSUMPTIONWASTHENCHALLENGED,ONTHEBASISTHATMNESARELIKELYTOENTERTHEHOSTCOUNTRYATALARGERSCALETHANDOMES

18、TICFIRMS,SEEFOREXAMPLEHYMER,1966ANDTHATBYITSVERYNATURE,FDICOULDBESEENASINTERACTIONBETWEENRIVALOLIGOPOLISTS,GRAHAM1978INDEED,THEANALYSISOFFDIBASEDONOWNERSHIPADVANTAGESSUGGESTSTHATONEOFTHEMAINMOTIVATIONSFORFDIISTOGENERATEMONOPOLYRENTSINTHEHOSTCOUNTRY,SEEFOREXAMPLECASSON1986HYMER1966ANDCOWLINGANDSUGDEN

19、1987SETOUTTHERATIONALEFORFDILEADINGTOINCREASESINHOSTMARKETCONCENTRATIONTHEYARGUETHATINWARDINVESTMENTEXACERBATESTHEMONOPOLYPROBLEM,ASMNESSEEKTOGENERATETHEMAXIMUMSCALEECONOMIES,THROUGHTHEOPERATIONOFTHEINTERNATIONALDIVISIONOFLABOURASSUCHTHEREFORE,THEMNESWILLACTTODISPLACEDOMESTICPRODUCERS,BYINCREASINGTH

20、EINDUSTRYSMINIMUMEFFICIENTSCALE,ANDTHEREFOREINCREASECONCENTRATIONANDREDUCECOMPETITIONCOWLINGANDSUGDEN1987THENARGUETHATASARESULTOFTHIS,THESCOPEFORCOLLUSION,ANDMONOPOLYPRICINGINTHEHOSTCOUNTRYWILLBEINCREASEDTHEREISHOWEVERAMORERECENTSTRANDINTHELITERATUREONFDI,WHICHISESSENTIALLYBASEDONTHE“NEWIO”THEORIES,

21、ANDEXPLAINSFDIINTERMSOFSTRATEGICINTERACTIONS,SEEFOREXAMPLESMITH1987,ROWTHORN1991ORMOTTA1994INSUCHAPPROACHES,ITISASSUMEDDEFACTOTHATMULTINATIONALACTIVITYISASSOCIATEDWITHOLIGOPOLY,ANDTHEREFORETHATFDIFLOWSAREATLEASTINPARTAFUNCTIONOFENTRYBARRIERSTHESEAPPROACHESALSOASSUMETHATASIGNIFICANTMOTIVEFORUNDERTAKI

22、NGFDIISTHEPOTENTIALFORMONOPOLYRENTSINTHEHOSTCOUNTRY,ASFROMTHEINTERNATIONALBUSINESSPERSPECTIVEDOBUCKLEYANDCASSON1998THEREISONLYALIMITEDEMPIRICALLITERATURETHATSEEKSTOTESTTHEARGUMENTSOUTLINEDABOVEDIRECTLYHIRSCHEY1982FINDSSUPPORTFORTHECLAIMTHATUSFIRMSUNDERTAKEFDIINORDERTOCAPTUREMONOPOLYRENTSINTHEFOREIGN

23、MARKET,WHILELALL1979REPORTSTHATFDIACTSTOINCREASECONCENTRATIONINMALAYSIATHEREISSOMEWORKWHICHATTEMPTSTORELATEFDITOHOSTCOUNTRYMARKETCONCENTRATION,BUTTHISHOWEVER,ISGENERALLYCONFINEDTOATTEMPTSTORELATEFOREIGNOWNERSHIPTOLEVELSOFCONCENTRATION,BOURLAKIS1987,WILMORE1989,BLOMSTROM1986THESEPAPERSINTERPRETAPOSIT

24、IVERELATIONSHIPBETWEENINWARDINVESTMENTANDCONCENTRATION,ASDEMONSTRATINGTHATINWARDINVESTMENTDOESINCREASETHEMONOPOLYPROBLEMHOWEVER,ITISQUESTIONABLEWHETHERTHISINTERPRETATIONTOOTHERSPECIFICATIONSOFTHE7DETERMINANTSOFFDIDRIFFIELDANDMUNDAY,2000IIIAMODELOFCONCENTRATIONCHANGETHEAPPROACHHERE,ISTODEVELOPAMODELO

25、FCONCENTRATIONCHANGE,BASEDONTHEEXISTINGLITERATUREOFTHEDETERMINANTSOFCONCENTRATIONIFONETAKESTHEGENERALFORMOFTHEMODELOFCONCENTRATIONCHANGE,EMPLOYEDBYDAVIESANDGEROSKI1997,KAMBHAMPATI1998,ORROSENBAUM1993,THENTHISSUGGESTSTHEFOLLOWINGSPECIFICATIONOFCONCENTRATIONCHANGETHUS,CONCENTRATIONCHANGESAREDETERMINED

26、BYCHANGESINLONGRUNCONCENTRATIONLEVELS,ANDBYDEVIATIONSFROMTHELONGRUNLEVELINTHEPREVIOUSTIMEPERIOD1DETERMINANTSOFCONCENTRATIONLEVELSMANYSTUDIESOFCONCENTRATION,AREBASEDONTHEWORKOFCURRYANDGEORGE1983ROSENBAUM1993FORTHEUSFOREXAMPLE,SHOWSTHATECONOMIESOFSCALEANDADVERTISINGINTENSITYINCREASECONCENTRATION,WHILE

27、DAVIESANDGEROSKI1997REPORTSIMILARRESULTSFORTHEUKINADDITION,FOLLOWINGSUTTON1991,SUNKCOSTSSUCHASRD,ADVERTISING,ANDCAPITALEXPENDITURE,AREASSUMEDTOBEPOSITIVELYRELATEDTOCONCENTRATIONGEROSKIANDPOMROY1990DEMONSTRATETHATCAPITALINTENSITYANDMARKETSIZEAREIMPORTANTDETERMINANTSOFINDUSTRYSTRUCTUREINADDITION,ECKAR

28、D1990SHOWSTHATINCREASESINPRODUCTIVITYANDSCALEECONOMIESWILLINCREASECONCENTRATIONASSOCIATEDWITHTHESEISTHEEXTENTTOWHICHDIFFERENTINDUSTRIESAREOBSERVEDTODEMONSTRATEDIFFERENTECONOMIESOFSCALEAMEASUREOFINWARDINVESTMENTISINCLUDED,TOTESTTHEFUNDAMENTALHYPOTHESISOFARELATIONSHIPBETWEENFDIANDCONCENTRATIONTHEINCLU

29、SIONOFTHISVARIABLEMAYINPARTBEINTERPRETEDASANATTEMPTTOREVISITTHEWORKOFBLOMSTROM1986,BOURLAKIS1987ORWILLMORE1989WHOSUGGESTTHATTHEREISARELATIONSHIPINLEVELSBETWEENCONCENTRATIONANDINWARDFDIHOWEVER,ASWILLBESEENINTHEFOLLOWINGSECTION,THISPAPERWILLALSOTESTFOREFFECTOFACHANGEINFDIPENETRATIONONCHANGESINCONCENTR

30、ATIONFINALLY,AMEASUREOFREGIONALCONCENTRATIONISINCLUDEDHIGHLEVELSOFREGIONALCONCENTRATIONAREOFTENASSOCIATEDWITHSTRUCTURALENTRYBARRIERS,SUCHASLIMITEDACCESSTORAWMATERIALSOROTHERINPUTS,ANDLONGSTANDINGVERTICALRESTRAINTSTHUS,ONECANEXPRESSTHEEQUILIBRIUMCONCENTRATIONLEVELINTERMSOFTHEOBSERVEDVALUESOFTHESETOFE

31、XPLANATORYVARIABLESHOWEVER,SUTTON1996SHOWSTHATANYATTEMPTTO8ESTIMATE3ISUNLIKELYTODERIVEESTIMATESOF2AND3THATARESTABLEOVERTHEFULLRANGEOFCONCENTRATIONOROFTHEINDEPENDENTVARIABLESRATHER,SUTTON1996,1998ADVOCATESTHATECONOMETRICWORKSEEKINGTOEXAMINETHEDETERMINANTSOFCONCENTRATION,ORTHERELATIONSHIPSBETWEENCONCE

32、NTRATIONANDADVERTISINGORRESEARCHINTENSITY,MUSTALLOWFORTHEFACTTHATINDUSTRIESWITHHIGHSUNKCOSTSARELIKELYTOEXHIBITDIFFERENTVALUESOF2AND3THANINDUSTRIESWITHLOWSUNKCOSTSASSUCH,ITNECESSARYTOATLEASTTESTTHEHYPOTHESISTHATANYINDUSTRYLEVELSAMPLEMUSTBEDIVIDED,ANDRELATIONSHIPSESTIMATEDSEPARATELYFORHIGHANDLOWSUNKCO

33、STINDUSTRIESTHISISSUEISDISCUSSEDINMOREDETAILINSECTION52SPEEDOFADJUSTMENTANDCHANGESINCONCENTRATIONTHEMODELTHATISPRESENTEDHEREHOWEVERISCONCERNEDWITHTHEDETERMINANTSOFCHANGESINCONCENTRATION,SOTHEDISCUSSIONBRIEFLYTURNSTOTHEPREVIOUSWORKINTHISAREATHELITERATURECONCERNINGTHEDETERMINANTSOFCHANGESINCONCENTRATI

34、ON,HASTENDEDTOFOCUSONTHEEVOLUTIONOFCOMPETITION,BASEDONTECHNOLOGICALADVANCE,SEEFOREXAMPLEROSENBAUM1993THEESSENTIALCONCLUSIONFROMTHESESTUDIESISTHATCHANGESINLONGRUNCONCENTRATIONLEVELSAREEXPECTEDTOBEIMPORTANTDETERMINANTSOFSHORTRUNCHANGESINCONCENTRATIONASARESULTOFSUCHAFRAMEWORK,THESTARTINGLEVELOFINDUSTRY

35、CONCENTRATION,PARTICULARLYINTERMSOFTHEDEVIATIONFROMLONGRUNLEVELS,ISANIMPORTANTDETERMINANTOFTHEMAGNITUDEOFANYSUBSEQUENTADJUSTMENTHOWEVER,ASOUTLINEDBYKAMBHAMPATI1998,ITISUNLIKELYTHATDIFFERENTINDUSTRIESWILLADJUSTTOWARDSTHEIRLONGRUNCONCENTRATIONLEVELSATAUNIFORMRATE,SUCHTHATANYESTIMATIONTHATSEEKSTOIMPOSE

36、ASTANDARDORAVERAGEVALUEOFACROSSARANGEOFINDUSTRIESMAYBEINVALIDRATHER,ONESHOULDSPECIFYTHEFOLLOWINGIVECONOMETRICANALYSISTHEESTIMATIONPROCEDURETHATISEMPLOYEDHEREISOUTLINEDINSOMEDETAILBYSEVESTREANDTROGNON1996DUETOTHEINCLUSIONOFCR5IT1ONTHELEFTHANDSIDEOFTHEEQUATIONTOBEESTIMATED,ANDGIVENTHEFACTTHATTHEMODELI

37、SESTIMATEDWITHINAPANELFRAMEWORK,ORDINARYLEASTSQUARESCANNOTBEAPPLIEDRATHER,ONEHASTOUSETHEGENERALISEDMETHODOFMOMENTSESTIMATORFOLLOWINGARELLANOANDBOND1988,1991EMPLOYINGINSTRUMENTALVARIABLESTHISISBECAUSE,WITHINAPANEL9FRAMEWORK,THE“LAGGEDLEVELS“VARIABLESSPECIFIEDIN6ARETREATEDASBEINGPREDETERMINEDTHISAPPRO

38、ACHISCOMMONFOREXAMPLEINLABOURDEMANDMODELLING,WHEREANONLINEARADJUSTMENTPROCESSISASSUMEDFORFURTHERDISCUSSIONOFTHIS,SEEHAMERMESH1995INTURN,ITISTHENNECESSARYTOTESTFOR“STRONG”EXOGENEITY,THATIS,THATALLINSTRUMENTSCANBEUSEDFORALLSUCCESSIVEYEARSTHISPROVIDESAPANELOFNINEANNUALDIFFERENCES,FOREACHOFTHE102INDUSTR

39、IESALLOWINGFORTHEUSEOFLAGSININSTRUMENTINGTHEENDOGENOUS“LEVELS”VARIABLES,THISPROVIDESAPANELOFEIGHTYEARSINDIFFERENCESONWHICHEQUATION6CANBEESTIMATEDTHISWASTHENESTIMATEDFORBOTHTHERAW,ANDTRADEADJUSTEDMEASURESOFCONCENTRATION,FORBOTHHIGHANDLOWSUNKCOSTINDUSTRIESTHERESULTSFROMTHESEESTIMATIONSAREPROVIDEDINTAB

40、LEIIVRESULTSTHERESULTSUSINGRAWCONCENTRATIONMEASUREREVEALTHATTHERELATIONBETWEENINWARDINVESTMENTANDINDUSTRYCONCENTRATIONISCLEARINHIGHSUNKCOSTINDUSTRIES,INWARDINVESTMENTHASTHEEFFECTOFREDUCINGCONCENTRATIONINTHEHOSTCOUNTRY,ANDASSUCH,FDICANBESEENASAMECHANISMBYWHICHENTRYREDUCESTHEMONOPOLYPROBLEMTHEEFFECTOF

41、FDIONMARKETSTRUCTUREISHOWEVERLESSSIGNIFICANTINTHECASEOFLOWSUNKCOSTINDUSTRIESTHISCONCURSWITHTHEFINDINGSOFGEROSKI1995,THATMNESAREABLETOOVERCOMEDOMESTICENTRYBARRIERSWHEREPOTENTIALDOMESTICENTRANTSARENOTTHISALSOCONCURSWITHARESULTREPORTEDBYDRIFFIELDANDMUNDAY1998,THATINWARDINVESTMENTREDUCESDOMESTICPROFITAB

42、ILITYINTHELEADINGFIRMSTAKINGTHEOTHERDETERMINANTSOFCONCENTRATIONINTURN,THERESULTSAREINLINEWITHTHEEXPECTEDRDINTENSITY,ECONOMIESOFSCALE,CAPITALINTENSITYANDREGIONALCONCENTRATIONAREALLPOSITIVELYASSOCIATEDWITHCONCENTRATION,WHILETHEEFFECTOFADVERTISINGINTENSITYISPOSITIVE,ANDSIGNIFICANTFORALLBUTHIGHRDINTENSI

43、TYINDUSTRIES,WHEREITISEXPECTEDTHATTECHNOLOGICALCOMPETITIONISMOREIMPORTANTTHANADVERTISINGTHEMODELINGENERALPERFORMSMUCHTHESAMEFORTHETRADEADJUSTEDMEASUREOFCONCENTRATION,ANDFORTHERAWMEASURETHERESULTSILLUSTRATETHATTHEIMPACTOFINWARDINVESTMENTONTHETRADEADJUSTEDMEASUREISGREATERTHANONTHERAWMEASURETHISSUGGEST

44、S,THATASWELLASTHECOMPETITIVEEFFECTOFFOREIGNENTRY,FDIALSOHASTHEIMPACTOF10INCREASINGBOTHIMPORTSANDEXPORTSINTOTHEDOMESTICMARKET,POSSIBLYTHROUGHINTRAFIRMTRADEINTRAFIRMTRADEWOULDHAVETHEEFFECTOFREDUCINGTHETRADEADJUSTEDMEASURE,WHILETHERAWMEASUREMAYREMAINUNCHANGEDTHERESULTSALSODEMONSTRATETHEHYPOTHESISEDEFFE

45、CTTHATFDIHASONTHESPEEDOFADJUSTMENTOFCONCENTRATIONINDUSTRIESTHATHAVEHIGHLEVELSOFFOREIGNPENETRATIONADJUSTTOWARDSTHEIREQUILIBRIUMLEVELQUICKERTHANOTHERSTHESAMEEFFECTISNOTEDFORIMPORTPENETRATIONANDNEWENTRYASSUCHTHEREFORE,FDICANBESEENASAMECHANISMFORINCREASINGCOMPETITIONATTHEINDUSTRYLEVELCONVERSELY,INDUSTRI

46、ESWITHHIGHLEVELSOFPROFITABILITYORREGIONALCONCENTRATIONARECHARACTERISEDBYSIGNIFICANTENTRYBARRIERS,ANDTHEREFOREADJUSTATASLOWERRATETHANAVERAGETHESERESULTSALSOCONFIRMTHERESULTSREPORTEDBYGEROSKIANDPOMROY1990,THATTHEDIRECTIONOFCHANGESININDUSTRYCONCENTRATIONISINVERSELYRELATEDTOTHEPREVIOUSLEVELSOFCONCENTRATIONGROWTHINSALESISNEGATIVELYASSOCIATEDWITHCHANGESINCONCENTRATION,PARTICULARLYINTHEADJUSTEDFIGURESTHISSUGGESTSTHATTHOSEINDUSTRIESWHEREDOMESTICSALESAREGROWING,ATTHEEXPENSEOFIMPORTCOMPETITION,AREINCREASINGCONCENTRATIONTHISINTERPRETATIONISCONFIRMEDBYTHESPEEDOFADJUSTMENTVARIABLES