The first aim of this paper is to decompose the productivity advantage of foreign multinationals into two components: the technology and scale effect. The second aim is to analyse the causal relationship between foreign ownership and these two components of productivity growth. We do so by...

This paper presents an empirical analysis of "outsourcing" using establishment level data for UK manufacturing industries. We analyse an establishment's decision to outsource and the subsequent effects of outsourcing on the establishment's productivity. We compare outsourcing in domestic with...

A key strategic choice for multinational firms is where to locate. When investing abroad, firms may find collocating with their own and competitors' prior investments beneficial. Such agglomeration may provide knowledge and infrastructure spillovers. Yet, as a firm invests sequentially, its past...

We use the rise of emerging-market multinationals as a vehicle to explore how a firm’s country of origin influences its internationalization. We argue that the home-country’s institutional and economic underdevelopment can influence the internationalization of firms in two ways. First,...

The "pollution haven" hypothesis states that multinational firms, particularly those in highly polluting industries, relocate to countries with weak environmental standards. Despite the plausibility and popularity of this hypothesis, Smarzynska and Wei find only weak evidence in its favor. The...

Until the end of the 1990s, Portugal benefited from backwardness advantages and converged vis-à-vis with the EU average via the effects of Foreign Direct Investment that operated a structural shift towards technology-intensive exports. However, being a small open economy located on the European...

In the international business literature location has traditionally been analyzed using Dunning's (1977) OLI framework, which focuses on the perspective of the multinational firm. However, another strand of literature has focused on the perspective of the host location. In this paper the current...

In analyzing firm entry and exit across Belgian manufacturing industries, this paper presents evidence that import competition and foreign direct investment discourage entry and stimulate exit of domestic entrepreneurs. These results are in line with theoretical occupational choice models that...

In the international business literature location has traditionally been analyzed using Dunning's (1977) OLI framework, which focuses on the perspective of the multinational firm. However, another strand of literature has focused on the perspective of the host location. In this paper the current...

Does the political culture of an area have any impact on the foreign direct investment (FDI) decisions of multinational corporations (MNCs)? This question is difficult to address empirically, as locations differ in many dimensions. We therefore address this question by examining MNC investment...