Using a large data set of European firms, this paper provides evidence that operations at multinational headquarters are significantly more profitable than operations at their foreign subsidiaries. The effect turns out to be robust and quantitatively large. Our findings suggest that the...

Introduction -- Part I: FDI Flows and Institutional Dynamics in Europe and Asia -- Part II: Redesigning of Public Policies to Meet Competitiveness and Attractiveness Challenges, while Dealing with Business Lobbying -- Part III: Multinational Companies across Home and Host Countries: Transfer,...