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Corporate Growth and FDI: Are Multinationals Stimulating Local Industrial Development?

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Author Info
Fotopoulos, Georgios
Louri-Dendrinou, Eleni
Abstract

The aim of this Paper is to improve our understanding of the empirical determinants of corporate growth by extending the literature to include a new group of variables related to FDI, namely the degree of foreign ownership and technology spillovers. Based on recent developments in the field, our analysis takes also into account the role of sunk costs and financial structure, while quantile regression techniques as more suitable to the data available (2640 manufacturing firms operating in Greece in the 1992-97 period) are used. Our findings highlight the role of multinationals in increasing corporate growth with varying intensity depending on industry groups and regression quantiles, and vindicate the use of new variables.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3128.

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Date of creation: Jan 2002
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Handle: RePEc:cpr:ceprdp:3128

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Related research
Keywords: corporate growth; multinational firms; quantile regression; spillovers;

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Find related papers by JEL classification:
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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Cited by:
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  1. Blandina Oliveira & Adelino Fortunato, 2003. "Testing Gibrat’s Law: Empirical Evidence from a Panel of Portuguese Manufacturing Firms," GEMF Working Papers 2003-07, GEMF - Faculdade de Economia, Universidade de Coimbra. [Downloadable!]
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