Organization of multinational activities and ownership structure

Christian Mugele and Monika Schnitzer ()

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: We develop a model of a multinational firm serving a foreign market that needs to decide about the location of production and the optimal ownership structure. We study how the location decision and the ownership choice interact, how these decisions are affected by (cultural) distance and how they depend on industry characteristics. Our analysis shows that (i) distance leads to less integration in low tech, but tends to lead to more integration in high tech industries, (ii) distance may have a non-monotonous effect on the likelihood of horizontal investments as opposed to exports, and (iii) marketing intensive industries are relatively more likely to produce close to their customers.

Date: 2008
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Citations: View citations in EconPapers (6)

Published in International Journal of Industrial Organization 6 26(2008): pp. 1274-1289

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Related works:
Journal Article: Organization of multinational activities and ownership structure (2008)
Working Paper: Organization of Multinational Activities and Ownership Structure (2006)
Working Paper: Organization of Multinational Activities and Ownership Structure (2006)
Working Paper: Organization of Multinational Activities and Ownership Structure (2006)
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