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Exploring outward FDI and the choice of destination: Evidence from Swedish firm-level data

Gullstrand, Joakim LU ; El-Sahli, Zouheir LU and Olofsdotter, Karin LU (2017) In Applied Economics Letters
Abstract
Using Swedish firm-level data on all firms and their affiliates abroad, we investigate what observable firm and country characteristics affect the size of an affiliate in a particular destination. We employ the richness of the data to investigate the importance of destination country factors in explaining firm outward FDI activities and distinguish between the factors that affect such activities in manufacturing versus services firms as well as vertical versus horizontal investments. Our results lend support to existing theories of multinational activity of manufacturing but not services firms. We also find observable differences between vertical and horizontal manufacturing firms that are not always explained by theory.
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author
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
outward FDI, globalization, FDI destination, heterogeneous firms
in
Applied Economics Letters
pages
4 pages
publisher
Routledge
external identifiers
  • scopus:85038001628
ISSN
1466-4291
DOI
10.1080/13504851.2017.1412068
language
English
LU publication?
yes
id
efbe9476-4a2b-48bf-a739-3c31f1786c3e
date added to LUP
2017-11-29 09:48:24
date last changed
2018-01-07 12:27:02
@article{efbe9476-4a2b-48bf-a739-3c31f1786c3e,
  abstract     = {Using Swedish firm-level data on all firms and their affiliates abroad, we investigate what observable firm and country characteristics affect the size of an affiliate in a particular destination. We employ the richness of the data to investigate the importance of destination country factors in explaining firm outward FDI activities and distinguish between the factors that affect such activities in manufacturing versus services firms as well as vertical versus horizontal investments. Our results lend support to existing theories of multinational activity of manufacturing but not services firms. We also find observable differences between vertical and horizontal manufacturing firms that are not always explained by theory.},
  author       = {Gullstrand, Joakim and El-Sahli, Zouheir and Olofsdotter, Karin},
  issn         = {1466-4291},
  keyword      = {outward FDI,globalization,FDI destination,heterogeneous firms},
  language     = {eng},
  month        = {12},
  pages        = {4},
  publisher    = {Routledge},
  series       = {Applied Economics Letters},
  title        = {Exploring outward FDI and the choice of destination: Evidence from Swedish firm-level data},
  url          = {http://dx.doi.org/10.1080/13504851.2017.1412068},
  year         = {2017},
}