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The spatial organization of multinational firms

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  • Fabrice Defever

Abstract

Using six years of firm‐level data covering 224 regions of the enlarged European Union, we evaluate the importance to a firm of locating its activities (production, headquarters, R&D, logistics and sales) close together. We find that, after controlling for regional characteristics, being closely located to a previous investment positively affects firm location choice. However, the impact of distance is dependent on the type of investment (production or service). The impact dies out faster for service activities. Finally, we show that a surprisingly positive effect comes from locating a new production plant close to an existing production investment, but in another country. A l’aide de données au niveau des firmes sur une période de six ans pour 224 régions de l’Union européenne agrandie, on examine l’importance pour une firme de localiser ses activités (production, siége social, R&D, logistique et ventes) tout prés les unes des autres. On découvre que, tenant compte des caractéristiques régionales, être proche de la localisation d’un investissement antérieur a un effet positif sur le choix de localisation. Cependant, l’impact de la distance dépend du type d’investissement (production ou service). L’impact s’atténue plus vite pour les activités de service. Finalement, on montre qu’il y a un impact remarquablement positif qui vient de la localisation d’un nouvel établissement de production prés d’un investissement de production existant, mais dans un autre pays.

Suggested Citation

  • Fabrice Defever, 2012. "The spatial organization of multinational firms," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(2), pages 672-697, May.
    • Handle: RePEc:wly:canjec:v:45:y:2012:i:2:p:672-697
    DOI: 10.1111/j.1540-5982.2012.01708.x
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    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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