Characterizing Euro Area Multinationals
This study uses firm-level data on a large sample of European manufacturing firms to investigate the links between opening up foreign affiliates and firms' productivity. The analysis is guided by recent theoretical models of international trade with firm heterogeneity. The paper finds that while only a small share of euro area firms locate affiliates abroad, these firms account for over-proportionally large shares of output, employment and profits in their home countries. They have higher survival rates and their productivity growth is also higher. The strongest contribution is by productivity growth of existing firms with a multinational status rather than entry into the multinational status. Finally, there are performance premia for multinationals with a large number of affiliates abroad relative to those with a small number
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- Arnold, Jens Matthias & Hussinger, Katrin, 2005.
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ZEW Discussion Papers
05-73, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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"Export versus FDI,"
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3741, C.E.P.R. Discussion Papers.
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"Exports, international investment, and plant performance : evidence from a non-parametric test,"
CORE Discussion Papers
2004009, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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- Hennart, J.M.A., 2007. "The theoretical rationale for a multinationality - performance relationship," Other publications TiSEM b4c7bdd4-bfda-467f-9886-3, Tilburg University, School of Economics and Management.
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"Firm Structure, Multinationals, and Manufacturing Plant Deaths,"
05-18, Center for Economic Studies, U.S. Census Bureau.
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"Aggregate Productivity Growth. Lessons from Microeconomic Evidence,"
in: New Developments in Productivity Analysis, pages 303-372
National Bureau of Economic Research, Inc.
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- John Haltiwanger & C J Krizan & Lucia Foster, 1998. "Aggregate Productivity Growth: Lessons From Microeconomic Evidence," Working Papers 98-12, Center for Economic Studies, U.S. Census Bureau.
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