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Multinational activity and country characteristics in OECD countries

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  • T. Gao

Abstract

This article uses data on multinational activity in OECD countries to test three alternative models of multinational production: the vertical multinational firm model the horizontal multinational firm model and the knowledge capital model. Unlike the evidence from US data in Markusen and Maskus' work, the results in this article show that the knowledge capital model performs significantly better than the horizontal model. The article presents the empirical evidence and concludes with a discussion of the strengths and weaknesses of the OECD and US data.

Suggested Citation

  • T. Gao, 2003. "Multinational activity and country characteristics in OECD countries," Applied Economics Letters, Taylor & Francis Journals, vol. 10(4), pages 255-258.
    • Handle: RePEc:taf:apeclt:v:10:y:2003:i:4:p:255-258
    DOI: 10.1080/13504850210138496
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    References listed on IDEAS

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    1. James R. Markusen & Keith E. Maskus, 2002. "Discriminating Among Alternative Theories of the Multinational Enterprise," Review of International Economics, Wiley Blackwell, vol. 10(4), pages 694-707, November.
    2. Helpman, Elhanan, 1984. "A Simple Theory of International Trade with Multinational Corporations," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 451-471, June.
    3. S. Lael Brainard, 1993. "A Simple Theory of Multinational Corporations and Trade with a Trade-Off Between Proximity and Concentration," NBER Working Papers 4269, National Bureau of Economic Research, Inc.
    4. James R. Markusen, 1997. "Trade versus Investment Liberalization," NBER Working Papers 6231, National Bureau of Economic Research, Inc.
    5. James R. Markusen & Keith E. Maskus, 2001. "General-Equilibrium Approaches to the Multinational Firm: A Review of Theory and Evidence," NBER Working Papers 8334, National Bureau of Economic Research, Inc.
    6. Ignatius J. Horstmann & James R. Markusen, 1990. "Endogenous Market Structures in International Trade," NBER Working Papers 3283, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Madanmohan Ghosh & Peter Syntetos & Weimin Wang, 2012. "Impact of FDI Restrictions on Inward FDI in OECD Countries," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 12(3), pages 1-26, August.
    2. Suma Athreye & Martha Prevezer, 2008. "R&D offshoring and the domestic science base in India and China," Working Papers 26, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    3. Navío-Marco, Julio & Solórzano-García, Marta & Matilla-García, Mariano & Urueña, Alberto, 2016. "Language as a key factor of long-term value creation in mergers and acquisitions in the telecommunications sector," Telecommunications Policy, Elsevier, vol. 40(10), pages 1052-1063.
    4. Samir Saidi & Sami Hammami, 2018. "Do Transport Infrastructures Promote the Foreign Direct Investments Attractiveness? Empirical Investigation from Four North African Countries," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 21(67), pages 110-125, March.
    5. Samir Saidi & Sami Hammami, 2016. "The Place of Transport Infrastructures among the Economic Factors of Foreign Direct Investment Attractiveness in the Meda-10 Region," American Journal of Economics and Business Administration, Science Publications, vol. 8(1), pages 23-34, March.
    6. André Cartapanis & Audrey Koulinsky & Nadine Richez-Battesti, 2006. "L'hétérogénéité sociale de l'Union européenne après l'élargissement et la question des délocalisations," Revue économique, Presses de Sciences-Po, vol. 57(4), pages 793-822.
    7. Samir SAIDI & Sami HAMMAMI, 2016. "Causal Relationships Between Transports, Territorial Management And Foreign Direct Investment: Fresh Evidence For The Developing Countries," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 6(2), pages 32-45, June.
    8. Gusev, Andrey (Гусев, Андрей), 2018. "Managing Cost Factors of Growth in Order to Increase the Efficiency of Innovative Start-Ups in Russia [Управление Стоимостными Факторами Роста В Целях Повышения Эффективности Инновационных Стартапо," Working Papers 041811, Russian Presidential Academy of National Economy and Public Administration.
    9. Samir Saidi, 2016. "Territorial Attractiveness of the Foreign Direct Investment: Empirical Evidence from Panel Data Analysis for the Case of Tunisia," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(4), pages 311-325, October.
    10. Souad BANNOUR Ep SFAR & Kais MTAR, 2015. "The Determinants of FDI in Tunisia: An Empirical Study Through A Gravity Model," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(12), pages 1306-1314, December.
    11. Samir Saidi & Sami Hammami, 2017. "Impact of Investments in Public Infrastructures on Economic Performance and Private Investment in Developing Countries: A Case Study for Tunisia," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 20(63), pages 126-146, March.

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