IDEAS home Printed from
   My bibliography  Save this paper

Firm-Specific Attributes and MNE Location Choices: Financial and Professional Service FDI To New York And London


  • L. Nachum
  • C. Wymbs


In this paper, we sought to extend the theory of the location determinants of MNEs by challenging one of the fundamental assumptions underlying it, namely that location advantages are absolutes whose values are identical for different MNEs. We explicitly acknowledge the relative value of location advantages for individual MNEs and search for the firm-specific attributes affecting this variation. The empirical testing is based on an analysis of 673 financial and professional service MNEs that entered New York and London business clusters via M&As during the last two decades. The findings confirm that the value of particular location advantages varies for MNEs with different attributes, and that it is the interaction between location and firm-specific attributes, rather than each of these independently, that affects location choices. Firms' previous experience in a country, the geographic scope of their acquisition activity, and their size were found to be particularly influential attributes. Classification-JEL: F23, L10, L80, R30

Suggested Citation

  • L. Nachum & C. Wymbs, 2002. "Firm-Specific Attributes and MNE Location Choices: Financial and Professional Service FDI To New York And London," Working Papers wp223, Centre for Business Research, University of Cambridge.
  • Handle: RePEc:cbr:cbrwps:wp223
    Note: PRO-1

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Dupuy, Claude & Gilly, Jean-Pierre, 1999. "Industrial Groups and Territories: The Case of Matra-Marconi-Space in Toulouse," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 207-223, March.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Edler, Jakob & Georghiou, Luke, 2007. "Public procurement and innovation--Resurrecting the demand side," Research Policy, Elsevier, vol. 36(7), pages 949-963, September.
    2. Trofimenko, Natalia, 2010. "Factors affecting location decisions of the economic headliners - exporters and foreign-owned firms - in China," Kiel Working Papers 1645, Kiel Institute for the World Economy (IfW).

    More about this item


    Foreign Acquisitions; Location Advantages; Clusters; Global Cities; Financial and professional service industries;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbr:cbrwps:wp223. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ruth Newman and Georgie Cohen). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.