Firm-Specific Attributes and MNE Location Choices: Financial and Professional Service FDI To New York And London
AbstractIn this paper, we sought to extend the theory of the location determinants of MNEs by challenging one of the fundamental assumptions underlying it, namely that location advantages are absolutes whose values are identical for different MNEs. We explicitly acknowledge the relative value of location advantages for individual MNEs and search for the firm-specific attributes affecting this variation. The empirical testing is based on an analysis of 673 financial and professional service MNEs that entered New York and London business clusters via M&As during the last two decades. The findings confirm that the value of particular location advantages varies for MNEs with different attributes, and that it is the interaction between location and firm-specific attributes, rather than each of these independently, that affects location choices. Firms' previous experience in a country, the geographic scope of their acquisition activity, and their size were found to be particularly influential attributes. Classification-JEL: F23, L10, L80, R30
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Bibliographic InfoPaper provided by ESRC Centre for Business Research in its series ESRC Centre for Business Research - Working Papers with number wp223.
Date of creation: Mar 2002
Date of revision:
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Web page: http://www.cbr.cam.ac.uk/
Foreign Acquisitions; Location Advantages; Clusters; Global Cities; Financial and professional service industries;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L80 - Industrial Organization - - Industry Studies: Services - - - General
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-06-13 (All new papers)
- NEP-IFN-2002-06-13 (International Finance)
- NEP-LAB-2002-06-13 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dupuy, Claude & Gilly, Jean-Pierre, 1999. "Industrial Groups and Territories: The Case of Matra-Marconi-Space in Toulouse," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 207-23, March.
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