The Spatial Organization of Multinational Firms

Fabrice Defever

No 3304, CESifo Working Paper Series from CESifo

Abstract: Using six years of firm-level data covering 224 regions of the enlarged European Union, we evaluate the importance to a firm of locating its activities (production, headquarters, R&D, logistics and sales) close together. We find that, after controlling for regional characteristics, being closely located to a previous investment positively affects firm location choice. However, the impact of distance is dependent on the type of investment (production or service). While within-firm co-location is important for both service and production activities, only production plants are likely to be located close to prior production investments. In this latter case, national borders have a surprisingly positive effect, increasing the probability of choosing a nearby location, but on the other side of the border.

Keywords: functional fragmentation; vertical linkages; location choice (search for similar items in EconPapers)
JEL-codes: F23 L22 R30 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: The spatial organization of multinational firms (2012)
Journal Article: The spatial organization of multinational firms (2012)
Working Paper: The Spatial Organization of Multinational Firms (2010)
Working Paper: The spatial organization of multinational firms (2010)
Working Paper: The Spatial Organization of Multinational Firms (2010)
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