scholarly journals Location decisions of heterogeneous European firms

2020 ◽  
Vol 9 (3) ◽  
pp. 265-269
Author(s):  
Josep Marti
Keyword(s):  
Logit Model ◽  
Investment Decisions ◽  
Heterogeneous Firms ◽  
Multinomial Logit Model ◽  
Location Decisions ◽  
Firm Level ◽  
European Firm ◽  
Productivity Level ◽  
Level Data ◽  
Foreign Affiliates

We analyze empirically how firms’ characteristics affect the foreign affiliates location decisions of heterogeneous firms in different markets. Using a European firm-level data and estimating the marginal effects for the multinomial logit model, the results corroborate the relevance of firms’ characteristics in their investment decisions, particularly the productivity level.

Multinational Banks and IMF Conditionality

2021 ◽  
Author(s):  
Trung A Dang ◽  
Randall W Stone
Keyword(s):  
Political Economy ◽  
Investment Decisions ◽  
Location Decisions ◽  
Preferential Treatment ◽  
Firm Level ◽  
Financial Firms ◽  
Level Data ◽  
Firm Level Data ◽  
Imf Programs ◽  
Investment Location

Abstract We find firm-level evidence that US banks receive preferential treatment in countries under IMF conditionality. We rely on investment location decisions to infer firms’ expectations about future profits and find that US firms are approximately 53 percent more likely to acquire financial firms in countries under financial conditionality. IMF programs without financial conditionality and FDI in other sectors serve as placebo tests. Financial conditionality has weak effects on investment decisions by non-US firms, which implies a political-economy interpretation. Firm-level data indicate that the distinctive behavior of US firms is not due to advantages of scale or to a US-firm fixed effect, but to US influence in the IMF. Firms from other major IMF shareholders benefit as well, but the effects are much weaker. The effects are concentrated in the politically relevant firms that have local affiliates, which is consistent with the interpretation that firms lobby for preferential treatment.

scholarly journals Information related service trade within firms: evidence from firm-level data in Germany

2021 ◽  
Author(s):  
Kurt A. Hafner ◽  
Jörn Kleinert
Keyword(s):  
Multinational Firms ◽  
Economies Of Scope ◽  
It Services ◽  
Firm Level ◽  
It Service ◽  
Level Data ◽  
Related Service ◽  
Foreign Affiliates ◽  
Knowledge Intensive ◽  
Parent Companies

AbstractMulti-unit firms have productivity advantages over competitors because of their use of a non-rival asset—firm-specific knowledge—in several units. Using knowledge-intensive services leads to economies of scope in production by multi-unit firms. Such headquarter are usually supplied by parent companies and serve to link different firm units. Headquarter services are difficult to quantify in statistics or surveys, except when they cross-borders and the exchange of services between MNEs and their offshore subsidiaries becomes apparent. This study therefore focuses on IT service imports to explain productivity differences among foreign affiliates of multinational firms in Germany. The authors base the analysis on the population of foreign multinational firms active in Germany and analyze what effect the import of IT services has on their productivity. They find that IT headquarter service flows have significant impacts on foreign affiliates’ productivity in general and US affiliates in particular. As the average IT-service flows (per firm and partner) from parent countries are significantly higher for US affiliates than non-US affiliates, they conclude that the import of IT services from the parent-company is a source of the productivity advantages of US affiliates in Germany.

The Size Distribution of Firms and Industrial Water Pollution: A Quantitative Analysis of China

2021 ◽  
Vol 13 (1) ◽  
pp. 151-183
Author(s):  
Ji Qi ◽  
Xin Tang ◽  
Xican Xi
Keyword(s):  
Water Pollution ◽  
Size Distribution ◽  
Heterogeneous Firms ◽  
Clean Technology ◽  
Industrial Water ◽  
Firm Level ◽  
Aggregate Output ◽  
Size Distribution Of Firms ◽  
Level Data ◽  
Treatment Technologies

We argue that misallocation across firms amplifies industrial water pollution by distorting the firm size distribution in China. Firm-level data indicate that larger firms are more likely to use clean technology but face higher distortions. In a heterogeneous firms model with an endogenous choice of pollution treatment technologies, we show that distortions that increase with firm-level TFP lower the adoption of clean technology, amplify aggregate pollution intensity, and lower aggregate output. Quantitatively, eliminating these correlated distortions would increase output by 30 percent and decrease pollution by 20 percent. Meanwhile, environmental regulations have sizable impact on pollution but limited effects on aggregate output. (JEL O13, O14, P28, P31, Q52, Q53, Q58)

scholarly journals Firm Sorting and Agglomeration

2018 ◽  
Vol 108 (11) ◽  
pp. 3117-3153 ◽  
Author(s):  
Cecile Gaubert
Keyword(s):  
General Equilibrium ◽  
Economic Activity ◽  
Heterogeneous Firms ◽  
Agglomeration Economies ◽  
Firm Level ◽  
Large Cities ◽  
French Firm ◽  
Level Data ◽  
Firm Level Data ◽  
Aggregate Effects

To account for the uneven distribution of economic activity in space, I propose a theory of the location choices of heterogeneous firms in a variety of sectors across cities. In equilibrium, the distribution of city sizes and the sorting patterns of firms are uniquely determined and affect aggregate TFP and welfare. I estimate the model using French firm-level data and find that nearly half of the productivity advantage of large cities is due to firm sorting, the rest coming from agglomeration economies. I quantify the general equilibrium effects of place-based policies: policies that subsidize smaller cities have negative aggregate effects. (JEL D22, D24, R11, R32)

Collective Technology Learning Between Transnational Corporations and Local Business Partners: The Case of West Sweden

10.1068/a3595 ◽  
2002 ◽  
Vol 34 (10) ◽  
pp. 1877-1897 ◽  
Author(s):  
Inge Ivarsson
Keyword(s):  
Transnational Corporations ◽  
Multiple Logistic Regression ◽  
Industry Clusters ◽  
Firm Level ◽  
Technology Learning ◽  
Business Partners ◽  
Local Business ◽  
Technological Cooperation ◽  
Level Data ◽  
Foreign Affiliates

Unique firm-level data from 287 majority-owned foreign affiliates (MOFAs) located in West Sweden are used to analyse the extent in which transnational corporations (TNCs) in a developed host country have established technological linkages, leading to collective technology learning where both TNCs and their local business partners benefit. The findings indicate that local business partners have established substantial levels of organised technological cooperation, not only with manufacturing MOFAs but also with wholesale MOFAs supplying industrial products. This seems to result in collective technology learning where both MOFAs and business partners in Sweden, especially customers, earn advantages. In the case of manufacturing MOFAs, local business partners in West Sweden seem to be important as cooperative partners. By using a multiple logistic regression to analyse key determinants, it was found that the size of MOFAs positively affected the establishment of technological linkages to business partners in Sweden, among both manufacturing MOFAs and sales MOFAs. A positive correlation with linkage formation was also found among manufacturing MOFAs regarding both increasing age and the extent in which they operate within competitive Swedish industry clusters.

scholarly journals Cross-Country Differences in Productivity: The Role of Allocation and Selection

2013 ◽  
Vol 103 (1) ◽  
pp. 305-334 ◽  
Author(s):  
Eric Bartelsman ◽  
John Haltiwanger ◽  
Stefano Scarpetta
Keyword(s):  
Heterogeneous Firms ◽  
Fixed Capital ◽  
Firm Level ◽  
Level Data ◽  
Firm Level Data ◽  
Country Differences ◽  
Cross Country

This paper investigates the effect of idiosyncratic (firm-level) policy distortions on aggregate outcomes. Exploiting harmonized firm-level data for a number of countries, we show that there is substantial and systematic cross-country variation in the within-industry covariance between size and productivity. We develop a model in which heterogeneous firms face adjustment frictions (overhead labor and quasi-fixed capital) and distortions. The model can be readily calibrated so that variations in the distribution of distortions allow matching the observed cross-country moments. We show that the differences in the distortions that account for the size-productivity covariance imply substantial differences in aggregate performance. (JEL D24, L25, O47)

scholarly journals Who suffers and how much from corruption? Evidence from firm-level data

2021 ◽  
Author(s):  
Andrzej Cieślik ◽  
Łukasz Goczek
Keyword(s):  
Logit Model ◽  
Firm Level ◽  
Empirical Results ◽  
Doing Business ◽  
Level Data ◽  
Firm Level Data ◽  
Administrative Procedures ◽  
Determinants Of Corruption ◽  
Tax Payments ◽  
Fractional Logit Model

AbstractIn this article, we study firm-level determinants of corruption using a sample of 164,000 companies from 144 countries for the 2005–2020 period. We analyze two variables related to corruption: the perception of corruption as an obstacle to doing business using an ordinal logit model and actual bribe tax payments using a fractional logit model. Controlling for other factors, both sets of our empirical results show that the extent of corruption is related to the time spent dealing with regulations and inspections. We argue that firms which spend more time dealing with administrative procedures have a greater perception of corruption and are forced to make significantly higher bribe payments. Therefore, in a successful fight against corruption, it is essential to simplify administrative procedures by reducing their number and eliminating direct contacts between firms and officials.

scholarly journals Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages

2004 ◽  
Vol 94 (3) ◽  
pp. 605-627 ◽  
Author(s):  
Beata Smarzynska Javorcik
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Ownership ◽  
Foreign Investments ◽  
Firm Level ◽  
Productivity Spillovers ◽  
Level Data ◽  
Firm Level Data ◽  
Foreign Affiliates ◽  
Backward Linkages

Many countries strive to attract foreign direct investment (FDI) hoping that knowledge brought by multinationals will spill over to domestic industries and increase their productivity. In contrast with earlier literature that failed to find positive intraindustry spillovers from FDI, this study focuses on effects operating across industries. The analysis, based on firm-level data from Lithuania, produces evidence consistent with positive productivity spillovers from FDI taking place through contacts between foreign affiliates and their local suppliers in upstream sectors. The data indicate that spillovers are associated with projects with shared domestic and foreign ownership but not with fully owned foreign investments.

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