US multinational affiliate exports from developing countries
Globalization of production is one of the dominant issues of the international economy. This paper explores how country characteristics influence the choice of developing country export bases by US multinationals. It separately analyses two types of exports by affiliates, exports to the headquarters country and exports to the rest of the world. The main findings are that favourable host country geography is related to production of both types of exports by multinational affiliates, and liberal policies toward multinationals are related to production of rest-of-world exports. Labor costs and taxes, traditional determinants, also prove important to one or both types of exports. More fundamentally, this research shows that country characteristics relate to the location of multinational production differently depending on the purpose of the production. Copyright 2004, Oxford University Press.
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Volume (Year): 4 (2004)
Issue (Month): 3 (June)
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