Interaction between firm-level and host-country characteristics and multinationals' integration choices
Charlie Joyez ()
No DT/2018/03, Working Papers from DIAL (Développement, Institutions et Mondialisation)
This paper extends the traditional international make or buy dilemma with a twofold contribution. First it considers joint-ventures, breaking with the common dichotomy. Second, it introduces a second source of heterogeneity among multinational rms, besides productivity: internationalization experience, which provides the rms complementary assets than does the total factor productivity (TFP). While both TFP and experience foster international integration, TFP is found to be more determinant in countries with strong contractual institutions and (only) experience matters in less certain destinations. The predictions from our reduced-form model are supported by the empirical examination of 6,321 French foreign aliates in 87 countries.
Keywords: FDI; joint-venture; foreign ownership; Firm heterogeneity; total factor productivity; Gradual Internationalization. (search for similar items in EconPapers)
JEL-codes: F23 F21 D24 L24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.dial.ird.fr/media/ird-sites-d-unites-de ... travail/2018/2018-03 First version, 2017 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:dia:wpaper:dt201803
Access Statistics for this paper
More papers in Working Papers from DIAL (Développement, Institutions et Mondialisation) Contact information at EDIRC.
Bibliographic data for series maintained by Loic Le Pezennec ().