The Spatial Organization of Multinational Firms
AbstractUsing six years of firm-level data covering 224 regions of the enlarged European Union, we evaluate the importance to a firm of locating its activities (production, headquarters, R&D, logistics and sales) close together. We find that, after controlling for regional characteristics, being closely located to a previous investment positively affects firm location choice. However, the impact of distance is dependent on the type of investment (production or service). While within-firm co-location is important for both service and production activities, only production plants are likely to be located close to prior production investments. In this latter case, national borders have a surprisingly positive effect, increasing the probability of choosing a nearby location, but on the other side of the border.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp1029.
Date of creation: Dec 2010
Date of revision:
Contact details of provider:
Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
Functional fragmentation; vertical linkages; location choice;
Other versions of this item:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-11 (All new papers)
- NEP-COM-2011-06-11 (Industrial Competition)
- NEP-CSE-2011-06-11 (Economics of Strategic Management)
- NEP-GEO-2011-06-11 (Economic Geography)
- NEP-INT-2011-06-11 (International Trade)
- NEP-URE-2011-06-11 (Urban & Real Estate 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.:
- Strauss-Kahn, Vanessa & Vives, Xavier, 2006.
"Why and where do headquarters move?,"
IESE Research Papers
D/650, IESE Business School.
- Fabrice Defever & Benedikt Heid & Mario Larch, 2011.
CEP Discussion Papers
dp1100, Centre for Economic Performance, LSE.
- Nobuaki Yamashita & Toshiyuki Matsuura & Kentaro Nakajima, 2013. "Agglomeration effects of inter-firm backward and forward linkages: evidence from Japanese manufacturing investment in China," Keio/Kyoto Joint Global COE Discussion Paper Series 2012-042, Keio/Kyoto Joint Global COE Program.
- Nick Pantaleo & Finn Poschmann & Scott Wilkie, 2013. "Improving the Tax Treatment of Intellectual Property Income in Canada," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 379, April.
- Riccardo Crescenzi & Carlo Pietrobelli & Roberta Rabellotti, 2012.
"Innovation Drivers, Value Chains and the Geography of Multinational Firms in European Regions,"
Europe in Question Discussion Paper Series of the London School of Economics (LEQs)
3, London School of Economics / European Institute.
- Riccardo Crescenzi & Carlo Pietrobelli & Roberta Rabellotti, 2012. "Innovation Drivers, Value Chains and the Geography of Multinational Firms in European Regions," LEQS â LSE 'Europe in Question' Discussion Paper Series 53, European Institute, LSE.
- Franz-Josef Bade & Eckhardt Bode & Eleonora Cutrini, 2012. "Spatial fragmentation of industries by functions," Working Papers 39-2012, Macerata University, Department of Studies on Economic Development (DiSSE), revised Feb 2012.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.