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A Global Database of Foreign Affiliate Sales

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  • Fukui, Tani
  • Lakatos, Csilla

Abstract

There is a severe lack of data describing foreign affiliate activity. To fill this gap, we produce a new dataset to further the literature on the behavior of multinational firms. Eurostat’s Foreign Affiliate Statistics database, with a large number of sectorlevel, bilateral observations on foreign affiliate sales, provides a basis from which to extrapolate the relationship between various host and source country factors and the foreign affiliate activity produced by them. This paper exploits the detailed level of the data by introducing sector-specific variables that in turn permit out of sample predictions. Further, the large number of excess zeros in the Eurostat dataset presents added complexity and is addressed using techniques borrowed from the trade literature, which also experiences a “zeros” problem. The dataset produced in this paper also serves as an input into the GTAP-based FDI model of Lakatos and Fukui (2012). This model integrates the foreign affiliate sales dataset produced in this paper into a framework that permits the analysis of the behavior of foreign affiliates within the context of a general equilibrium model.

Suggested Citation

  • Fukui, Tani & Lakatos, Csilla, 2012. "A Global Database of Foreign Affiliate Sales," Conference papers 332203, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332203
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    File URL: https://ageconsearch.umn.edu/record/332203/files/6037.pdf
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    References listed on IDEAS

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    Cited by:

    1. Gouranga G. Das & Zeynep Akgul & Badri G. Narayanan, 2023. "How Do Productivity Benefits Spill Over Across Firms? Explorations in a Heterogeneous Firm Applied General Equilibrium Trade Model," Politická ekonomie, Prague University of Economics and Business, vol. 2023(2), pages 104-129.
    2. Bekkers, Eddy & Corong, Erwin & Lakatos, Csilla & Macskasi, Indre & Metivier, Jeanne & Wettstein, Steen & Yuan, Wen Jin, 2020. "Foreign Affiliate Sales Data," Conference papers 333241, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Saad Ahmad & Jeffrey Bergstrand & Jordi Paniagua & Heather Wickramarachi, 2025. "The Multinational Revenue, Employment, and Investment Database (MREID)," Review of International Economics, Wiley Blackwell, vol. 33(4), pages 817-836, September.

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