The Location of Domestic and Foreign Production Affiliates by French Multinational Firms
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
Economists interested in location choices usually focus their attention on investments abroad. This neglects the fact that multinational enterprises continue to invest domestically while undertaking foreign expansion. This paper compares investments at home and abroad. Our firm-level dataset shows an important home bias in productive investments. Part of this "excessive" domestic investment is explained by standard determinants of location choices. The interdependence between affiliates of the same industrial group however accounts for the lion's share of the home bias. Moreover, French firms' propensity to invest abroad is positively related to their productivity and the size of their intangible assets.
Series:
Working Paper No. 2010/022
Subject:
Balance of payments Econometric analysis Economic sectors Employment Foreign direct investment Labor Logit models Production Productivity Transnational corporations
English
Publication Date:
January 1, 2010
ISBN/ISSN:
9781451962345/1018-5941
Stock No:
WPIEA2010022
Pages:
32
Please address any questions about this title to publications@imf.org