Fancy a Stay at the ‘Hotel California’? The Role of Easy Entry and Exit for FDI
研究了东道国劳动市场规制（作为退出难易度的指标）与进入激励之间的权衡，发现两者对美国跨国公司的区位选择都很重要。
Summary Investment incentives targeted at attracting multinational firms have been extensively researched, and empirical evidence has shown them to be influential. The same is not true of exit restrictions. Yet, as recent theory suggests, there may be a trade‐off between entry incentives and ease of exit. This paper focuses on that trade‐off in the case of US multinationals in 33 host countries. An indicator of labour market regulations is used as a measure of ease of exit. Results suggest that both entry incentives and labour market regulations are important and ignoring the latter neglects an important dimension in firms' location decision.