This paper contributes to the scarce empirical literature on the impact of foreign ownership on human capital intensity. New evidence is provided, based on a comprehensive, large-scale survey of technology-based firms located in Portugal. Using two alternatives measures of human capital (one...

Despite voluminous literature on corruption and the entry mode choices of MNCs in isolation, a comprehensive account which details the mechanisms through which corruption impacts on MNCs’ entry modes is lacking. To overcome such a gap, we systematically review and provide an up-to-date...

The role of multinational firms in the world economy is widely recognized. Multinationals’ activities produce various effects in the host countries, particularly in areas such as: economic growth, technology and innovatory capacity, employment, market structure, performance and business...

In this study we test the trade Global Engagement hypothesis in which firms more globally engaged – either multinationals or exporters – are more innovative. The test is applied to 4818 Portuguese enterprises´ data for the period 2002-2004 through the use of the fourth Portuguese Community...

The present work analyzes the multinational firm's decision concerning the relocation of production from a country where it is currently settled, to another foreign country, assuming that the government of this country has private information on his specific type (type G or type B, with the...

The present paper analyses the multinational firm's decision on where to subcontract in a context of asymmetric information. When a multinational firm (MNF) intends to subcontract the production of a good to a foreign firm, it faces an adverse selection problem. In fact, at the outset, foreign...

This article uses the investment development path to analyse the evolution of Portugal’s competitiveness in recent years. This is interpreted as the country’s capacity to both attract and engage in foreign direct investment. The estimation of the Portuguese IDP confirms previous claims that...

This paper reviews arguments and empirical findings on positive effects of FDI on host country firms. With the exception of the only unambiguous result of microeconometric studies, which is the superior productivity of foreign firms, the main conclusion extracted from empirical studies is the...

Theoretically, the explanatory approaches of foreign direct investment (FDI), as for example, the internalization theory and the eclectic paradigm, and general equilibrium trade models that incorporate horizontal multinational firms (MNEs), sustain the existence of a substitution relationship...

When a company decides to invest abroad, it can do it through the establishment of a new firm (greenfield investment) or by the purchase of an already existing firm. Although there is a vast empirical literature on the macroeconomic determinants of aggregate FDI, there are just a few studies...