Production versus Distribution Oriented FDI

Joern Kleinert () and Farid Toubal

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: The business literature has long recognized the importance of multinationals' distribution networks. The empirical analysis of distribution-oriented FDI has, however, received little attention which is at least partly due to the lack of appropriate data. We present a slightly modified version of Helpman et al. (Am Econ Rev 94(1):300-316, 2004) that explicitly models the possibility for a multinational firm to export through its wholesale trade affiliate. We analyze the multinational firms' choice between foreign production and foreign distribution. Our empirical analysis uses different discrete choice models and alternative specifications for several sub-samples of multinational firms. Our results show that the choice between distribution and production-oriented FDI is based on the trade-off between fixed and variable costs.

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Published in Review of World Economics, 2013, 149 (3), pp.423-442. ⟨10.1007/s10290-013-0158-1⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Production versus Distribution Oriented FDI (2013)
Working Paper: Production versus Distribution Oriented FDI (2013)
Working Paper: Production versus Distribution-oriented FDI (2010)
Working Paper: Production versus Distribution-oriented FDI (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-00860204

DOI: 10.1007/s10290-013-0158-1

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().