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Exploring outward FDI and the choice of destination: evidence from Swedish firm-level data

Zouheir El-Sahli, Joakim Gullstrand () and Karin Olofsdotter ()

Applied Economics Letters, 2018, vol. 25, issue 17, 1222-1225

Abstract: Using Swedish firm-level data on all firms and their affiliates abroad, we investigate what observable firm and country characteristics affect the size of an affiliate in a particular destination. We employ the richness of the data to investigate the importance of destination country factors in explaining firm outward FDI activities and distinguish between the factors that affect such activities in manufacturing versus services firms as well as vertical versus horizontal investments. Our results lend support to existing theories of multinational activity of manufacturing but not services firms. We also find observable differences between vertical and horizontal manufacturing firms that are not always explained by theory.

Date: 2018
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Citations: View citations in EconPapers (2)

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Working Paper: Exploring Outward FDI and the Choice of Destination: Evidence from Swedish Firm-Level Data (2016) Downloads
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DOI: 10.1080/13504851.2017.1412068

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