The Spatial Organization of Multinational Firms
Abstract
Using 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 Info
If 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 Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3304.Length:
Date of creation: 2010
Date of revision:
Handle: RePEc:ces:ceswps:_3304
Contact details of provider:
Postal: Poschingerstrasse 5, 81679 Munich
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Email:
Web page: http://www.cesifo.de
More information through EDIRC
Related research
Keywords: functional fragmentation; vertical linkages; location choice;Other versions of this item:
- Fabrice Defever, 2012. "The spatial organization of multinational firms," Canadian Journal of Economics, Canadian Economics Association, vol. 45(2), pages 672-697, May.
- Fabrice Defever, 2010. "The Spatial Organization of Multinational Firms," CEP Discussion Papers dp1029, Centre for Economic Performance, LSE.
- Fabrice Defever, . "The Spatial Organization of Multinational Firms," Discussion Papers 10/29, University of Nottingham, GEP.
- 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
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - General
References
References listed on IDEASPlease 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, 2009.
"Why and where do headquarters move?,"
Regional Science and Urban Economics,
Elsevier, vol. 39(2), pages 168-186, March.
- Strauss-Kahn, Vanessa & Vives, Xavier, 2006. "Why and where do headquarters move?," IESE Research Papers D/650, IESE Business School.
- Strauss-Kahn, Vanessa & Vives, Xavier, 2005. "Why and Where do Headquarters Move?," CEPR Discussion Papers 5070, C.E.P.R. Discussion Papers.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Fabrice Defever & Benedikt Heid & Mario Larch, 2011.
"Spatial Exporters,"
CEP Discussion Papers
dp1100, Centre for Economic Performance, LSE.
- Fabrice Defever & Benedikt Heid & Mario Larch, 2011. "Spatial Exporters," CESifo Working Paper Series 3672, CESifo Group Munich.
- 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.
- 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.
- 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.
- 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.
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_3304For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

