Essays on the implications of firm behaviors in learning, locating, and advertising Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/2z10ws833

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  • 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.
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