Are multinational enterprises MNEs more likely than none-MNEs, owing to their footlose charater, to close down their plants? The results from using a panel o all Swedish manufacturing plants over the period 1993 and 2002 suggest that MNE plants, and in particular Swedish MNE plants, have higher probability to exit the market than non-MNE plants. The outcome is robust controlling for other variables affecting the survival rates. Among non-MNE plants the probabilities of exit is higher in non-exporting firms than in exporting firms. Moreover, the increased forefin presence in swedish manufacturing seems, due to intesified competition, to have led to higher exit rates of plants in non-exporting non-MNEs. Plants of globally engaged indigenous firms, such as plants of Swedish MNEs and exporting non-MNEs, appear. on the other hand, to have been unaffected of the increased foregin presence.
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Paper provided by Örebro University, Swedish Business School in its series Working Papers with number
2007:7.
Find related papers by JEL classification: C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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