IBR paper Revision 25-08-2016.pdf (294.56 kB)
Explaining variability in the investment location choices of MNEs: an exploration of country, industry and firm effects
journal contribution
posted on 2016-12-19, 13:52 authored by Simona RasciuteSimona Rasciute, Paul DownwardPaul DownwardThis paper examines the variation in foreign direct investment (FDI) location decisions of European multinational enterprises (MNEs.) An innovative empirical approach is applied to a new data set which contains over 15,000 individual FDI location decisions in 25 European countries over a 17-year period and combines country, industry and firm level factors. The empirical results show that the responsiveness of FDI location choices to country-level factors is heterogeneous both across sectors and across firms of different characteristics as well as unobserved factors. In particular the results show that the importance of the market size, good infrastructure and Western business and legal environment increases with investing firm’s size, while proximity, as well as cultural and linguistic ties are more important for smaller firms.
History
School
- Sport, Exercise and Health Sciences
Published in
International Business ReviewVolume
26Issue
4Pages
605 - 613Citation
RASCIUTE, S. and DOWNWARD, P., 2017. Explaining variability in the investment location choices of MNEs: an exploration of country, industry and firm effects. International Business Review, 26(4), pp. 605-613.Publisher
© ElsevierVersion
- AM (Accepted Manuscript)
Publisher statement
This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/Acceptance date
2016-12-06Publication date
2016-12-15Notes
This paper was accepted for publication in the journal International Business Review and the definitive published version is available at http://dx.doi.org/10.1016/j.ibusrev.2016.12.002ISSN
1873-6149Publisher version
Language
- en