자료출처-대외경제졍책연구원- 경제자료-최신경제외신
# Abstract: In this paper we examine entry decision of a foreign firm when the input market in the host-country is imperfect competitive and production requires non-tradable inputs. We show that the foreign firm’s strategic choice about FDI and export may affect the price of input in the host-country significantly and provides a rationale for doing both FDI and export at the same time. So, unlike the previous works focusing on the exogenous factors to explain that FDI and exports may be ‘complement’, we show that it may happen when the strategic actions of the foreign firms affect an endogenous variable in its favor. We show that this result is robust even if there is competition in the host-country market or the input market in the home country is imperfectly competitive.
# Outline 1. Introduction 2. Monopoly market structure 2.1. Decision on FDI 2.2. Optimal input price in the host-country 2.3. Optimal amount of export 2.4. Implications on input price in the host-country 3. Duopoly market structure 3.1. Decision on FDI 3.2. Optimal input price in the host-country 3.3. Optimal amount of export 3.4. Implications on input price 3.5. Effect of competition on the production decision of firm 1 4. Imperfectly competitive home country input market 5. Conclusion
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