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US multinational affiliate exports from developing countries

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  • Howard J. Shatz

Abstract

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.

Suggested Citation

  • Howard J. Shatz, 2004. "US multinational affiliate exports from developing countries," Journal of Economic Geography, Oxford University Press, vol. 4(3), pages 323-344, June.
  • Handle: RePEc:oup:jecgeo:v:4:y:2004:i:3:p:323-344
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    File URL: http://hdl.handle.net/10.1093/jnlecg/lbh017
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    Cited by:

    1. Gianmarco I.P. Ottaviano & Alessandro Turrini, 2002. "Distance and FDI when Contracts are Incomplete," Development Working Papers 165, Centro Studi Luca d'Agliano, University of Milano.
    2. Giovanni Peri & Dieter Urban, 2002. "The Veblen-Gerschenkron Effect of FDI in Mezzogiorno and East Germany," Development Working Papers 164, Centro Studi Luca d'Agliano, University of Milano.
    3. Céline Azémar & Rodolphe Desbordes, 2010. "Short-run Strategies for Attracting Foreign Direct Investment," The World Economy, Wiley Blackwell, vol. 33(7), pages 928-957, July.
    4. Alyson C. Ma & Ari Van Assche, 2016. "Spatial Linkages and Export Processing Location in China," The World Economy, Wiley Blackwell, vol. 39(3), pages 316-338, March.

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