EconPapers    
Economics at your fingertips  
 

The Scope, Scale and Locational Preferences of Spanish Multinationals

Mainer-Casado, Carolina, José Carlos Fariñas and Lourdes Moreno ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the relationship between firms’ heterogeneity and their multinational activity. We examine the scope and the scale of multinational firms following the insights of Yeaple’s (2009) model. The goal of the paper is to contribute to a better understanding of the activity of Spanish multinationals using a sample of Spanish multinational firms. Our dataset is built from two databases, SABI and ORBIS, both from the Bureau van Dijk. Our results confirm that more productive firms have a greater multinational activity in terms of both the scope (the number of foreign markets where they invest) and the scale (the volume of local sales by subsidiaries in foreign markets). The structure of Spanish multinational firms’ activity is also analysed from the perspective of host country characteristics (GDP, population, distance and language) using standard gravity equations. Country characteristics that are positively associated (GDP and common language) with the volume of multinational activity are negatively related to the productivity of firms that go abroad. This asymmetry also holds for bilateral characteristics as distance that appears negatively associated with the level of multinational activity.

Keywords: Multinational firms; heterogeneity; productivity (search for similar items in EconPapers)
JEL-codes: F23 F61 L6 L8 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2018-04-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/85766/1/MPRA_paper_85766.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/86237/1/MPRA_paper_86237.pdf revised version (application/pdf)

Related works:
Working Paper: The Scope, Scale and Locational Preferences of Spanish Multinationals (2018) Downloads
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:pra:mprapa:85766

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2019-03-31
Handle: RePEc:pra:mprapa:85766