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Importers, Exporters and Multinationals: Exploring the Hierarchy of International Linkages

Author

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  • Joakim Gullstrand

    (Lund University)

  • Karin Olofsdotter

    (Lund University)

  • Susanna Thede

    (Institute for European Studies, University of Malta)

Abstract

The purpose of this paper is to empirically explore two dimensions of the firm hierarchy of international market-specific linkages, using data on Swedish manufacturing firms from 1997 to 2007. First, we investigate the productivity ordering with respect to three international linkages; importing, exporting and investing abroad. Second, we explore whether differences in the productivity ordering across industries correlates with industry and country characteristics. Our findings support a general productivity hierarchy from importing to exporting and from exporting to investing abroad, as well as from a low to a high number of linkages (measuring the complexity of firms’ international linkages). However, an industry-by-industry examination shows that the hierarchical structure is only generally upheld when it comes to the number of international linkages, while the ordering of import, export and investment linkages does not exhibit the same regularity across industries. Extending the analysis, we find that the lack of a hierarchical structure is more likely in industries focusing on larger and less distant markets.

Suggested Citation

  • Joakim Gullstrand & Karin Olofsdotter & Susanna Thede, 2016. "Importers, Exporters and Multinationals: Exploring the Hierarchy of International Linkages," Open Economies Review, Springer, vol. 27(3), pages 495-514, July.
    • Handle: RePEc:kap:openec:v:27:y:2016:i:3:d:10.1007_s11079-015-9383-7
    DOI: 10.1007/s11079-015-9383-7
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    Citations

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    Cited by:

    1. Joachim Wagner, 2018. "Multiple Import Sourcing. First Evidence for German Enterprises from Manufacturing Industries," Open Economies Review, Springer, vol. 29(1), pages 165-175, February.
    2. Gullstrand, Joakim, 2017. "The Features of a Survey on the Export Decisions of Swedish Small and Medium-Sized Enterprises," Working Papers 2017:6, Lund University, Department of Economics.
    3. Fariñas, José C. & Martín-Marcos, Ana & Velázquez, Francisco J., 2019. "Estimating the Scope Elasticity of Multinational Firms: An Empirical Assessment," MPRA Paper 94990, University Library of Munich, Germany.
    4. Hansson, Åsa & Olofsdotter, Karin & Thede, Susanna, 2016. "Do Multinationals Pay Less in Taxes than Domestic Firms? Evidence from the Swedish Manufacturing Sector," Working Papers 2016:17, Lund University, Department of Economics.
    5. José C. Fariñas & Ana Martín-Marcos & Francisco J. Velázquez, 2021. "The Geographical Scope of Multinational Firms and Heterogeneity," Open Economies Review, Springer, vol. 32(4), pages 761-788, September.
    6. Shubin Yang & Chris Milner & Sandra Lancheros & Saileshsingh Gunessee, 2020. "Access to Finance, Technology Investments and Exporting Decisions of Indian Services Firms," Open Economies Review, Springer, vol. 31(5), pages 1009-1036, November.

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    More about this item

    Keywords

    Manufacturing firms; Productivity ordering; Market linkages; Linkage complexity;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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