This dissertation addresses three topics on the implications of firm behaviors
in creating and adopting knowledge of production, choosing international location
for production and market access, and using informative advertising in a market
competition with multidimensional product characteristics. The first study
investigates the empirical evidence of local knowledge spillovers in Indonesian
medium and large manufacturing industry. The second study looks at the link
between the patterns of trade revealed comparative advantage and net inward foreign
direct investment in five developed countries: France, Italy, Japan, the United
Kingdom, and the United States. The third study seeks to determine the effects of
informative advertising in a market with two-dimensional, vertically differentiated
products.
The results of the first study show that the extent of knowledge spillovers
depends on both geographical and technological proximities. In addition, the extent
of knowledge spillovers seems to depend on sector-specific characteristics and the
presence of foreign investment. The results of the second study reveal a significant
role of comparative advantage in determining inflows of foreign direct investment in
developed countries, especially in the services industry. Finally, the results of the
third study show that with informative advertising, the firm with the 'better' product
will charge a higher market, have a larger market share, and advertise more. In
addition, even when advertising leads to higher market prices, the full-prices that the
consumers must pay are still lower than in the case of no advertising. / Graduation date: 2004
| Identifer | oai:union.ndltd.org:ORGSU/oai:ir.library.oregonstate.edu:1957/30358 |
| Date | 21 July 2003 |
| Creators | Palangkaraya, Alfons |
| Contributors | Fare, Rolf |
| Source Sets | Oregon State University |
| Language | en_US |
| Detected Language | English |
| Type | Thesis/Dissertation |
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