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

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  • 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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Keywords: corporate growth; multinational firms; quantile regression; spillovers;

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Citations

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Cited by:
  1. Adamos Adamou & Subash S, 2008. "The Impact of R&D and Foreign Direct Investment on Firm Growth in Emerging-Developing Countries : Evidence from Indian Manufacturing Industries," Development Economics Working Papers 22492, East Asian Bureau of Economic Research.
  2. Blandina Oliveira & Adelino Fortunato, 2006. "Testing Gibrat's Law: Empirical Evidence from a Panel of Portuguese Manufacturing Firms," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 13(1), pages 65-81.
  3. Georgios Fotopoulos & Ioannis Giotopoulos, 2010. "Gibrat’s law and persistence of growth in Greek manufacturing," Small Business Economics, Springer, vol. 35(2), pages 191-202, September.
  4. Alex Coad & Werner Hölzl, 2009. "On the Autocorrelation of Growth Rates," Journal of Industry, Competition and Trade, Springer, vol. 9(2), pages 139-166, June.
  5. Robert Petrunia, 2008. "Does Gibrat’s Law Hold? Evidence from Canadian Retail and Manufacturing Firms," Small Business Economics, Springer, vol. 30(2), pages 201-214, February.
  6. Sophia Dimelis & Ioannis Giotopoulos & Helen Louri, 2013. "The credit crunch and firm growth in the euro area: 2005-2011. A quantile panel analysis," Working Papers 165, Bank of Greece.
  7. Georgios Fotopoulos & Helen Louri, 2004. "Firm Growth and FDI: Are Multinationals Stimulating Local Industrial Development?," Journal of Industry, Competition and Trade, Springer, vol. 4(3), pages 163-189, 09.
  8. Michael Pfaffermayr, 2007. "Firm Growth Under Sample Selection: Conditional σ-Convergence in Firm Size?," Review of Industrial Organization, Springer, vol. 31(4), pages 303-328, December.
  9. F. Lotti & E. Santarelli & M. Vivarelli, 2003. "Gibrat's Law and Market Selection in the Radio, TV & Telecommunications Equipment Industry," Working Papers 478, Dipartimento Scienze Economiche, Universita' di Bologna.
  10. Mercedes Teruel-Carrizosa, 2010. "Gibrat’s law and the learning process," Small Business Economics, Springer, vol. 34(4), pages 355-373, May.
  11. Francesca Lotti & Marco Vivarelli & Enrico Santarelli, 2004. "Gibrat's Law and Market Selection," Papers on Entrepreneurship, Growth and Public Policy 2004-28, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  12. Barbara ERMINI, 2008. "Oltre Gibrat. Capitale umano dei fondatori, endogeneita' del finanziamento pubblico e crescita delle giovani imprese hi-tech italiane," Working Papers 322, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  13. Daunfeldt, Sven-Olov & Lang, Åsa & Macuchova, Zuzana & Rudholm, Niklas, 2011. "Firm Growth in the Retail and Wholesale Trade Sectors – Evidence from Sweden," HUI Working Papers 50, HUI Research.
  14. Marco Capasso & Elena Cefis & Alessandro Sapio, 2013. "Reconciling quantile autoregressions of firm size and variance–size scaling," Small Business Economics, Springer, vol. 41(3), pages 609-632, October.
  15. Adamos Adamou & Subash S, 2008. "The Impact of R&D and Foreign Direct Investment on Firm Growth in Emerging-Developing Countries: Evidence from Indian Manufacturing Industries," Working Papers 2008-037, Madras School of Economics,Chennai,India.

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