Location decisions of heterogeneous European firms

Authors

  • Josep Marti

DOI:

https://doi.org/10.17811/ebl.9.3.2020.265-269

Abstract

We analyze empirically how firms’ characteristics affect the foreign affiliates location decisions of heterogeneous firms in different markets. Using a European firm-level data and estimating the marginal effects for the multinomial logit model, the results corroborate the relevance of firms’ characteristics in their investment decisions, particularly the productivity level.

References

Aw, B. Y., and Lee, Y. (2008). Firm heterogeneity and location choice of Taiwanese multinationals. Journal of International Economics, 75(1), 167-179.

Baltagi, B. H., Egger, P., and Pfaffermayr, M. (2007). Estimating models of complex FDI: Are there third-country effects?. Journal of Econometrics 140(1), 260-281.

Blonigen, B. A., Davies, R. B., Waddell, G. R., and Naughton, H. T. (2007). FDI in space: Spatial autoregressive relationships in foreign direct investment. European Economic Review 51(5), 1303-1325.

Bowen, H. P., and Wiersema, M. F. (2004). Modeling limited dependent variables: Methods and guidelines for researchers in strategic management. In Research methodology in strategy and management (87-134). Emerald Group Publishing Limited.

Ekholm, K., Forslid, R., and Markusen, J. R. (2007). Export‐platform foreign direct investment. Journal of the European Economic Association, 5(4), 776-795.

Hausman, J. A., and McFadden D. (1984). Specification Tests for the Multinomial Logit Model, Econometrica, 52:5, 1219-1240.

McFadden, D. (1974). Conditional Logit Analysis of Qualitative Choice Behaviour. In: Zarembka, P. (Ed.), Frontiers in Econometrics, Chap. 4. Academic Press, New York, 105–142.

Yeaple, S. R. (2009). Firm heterogeneity and the structure of US multinational activity. Journal of International Economics, 78(2), 206-215.

Downloads

Published

13-12-2020

How to Cite

Marti, J. (2020). Location decisions of heterogeneous European firms. Economics and Business Letters, 9(3), 265–269. https://doi.org/10.17811/ebl.9.3.2020.265-269

Issue

Vol. 9 No. 3 (2020): September - Special Issue Selected papers from 7th International PhD Meeting in Economics 2019 (Editor-in-Charge: Theodore Panagiotidis)

Section

Articles

License

The works published in this journal are subject to the following terms:

1. Oviedo University Press (the publisher) retains the property rights (copyright) of published works, and encourages and enables the reuse of the same under the license specified in paragraph 2.

© Ediuno. Ediciones de la Universidad de Oviedo / Oviedo University Press

2. The works are published in the online edition of the journal under a Creative Commons Attribution-Non Commercial-Non Derives 3.0 Spain (legal text). You can copy, use, distribute, transmit and publicly display, provided that: i) you cite the author and the original source of publication (journal, publisher and URL of the work), ii) they are not used for commercial purposes, iii) mentions the existence and specifications of this license.

3. Conditions of self-archiving. The author can archive the post-print version of the article (publisher’s version) on the author’s personal website and/or on the web of  the institution where he belong, including a link to the page of the journal and putting the way of citation of the work. Economics and Business Letters and its URL https://reunido.uniovi.es/index.php/EBL/index are the only authorized source for correctly giving the reference of the publisher’s version in every mention of the article.