A Global Database of Foreign Affiliate Sales

نویسندگان

  • Tani Fukui
  • Csilla Lakatos
چکیده

There is a severe lack of data describing foreign affiliate activity. To fill this gap, we produce a new dataset to further the literature on the behavior of multinational firms. Eurostat’s Foreign Affiliate Statistics database, with a large number of sector-level, bilateral observations on foreign affiliate sales, provides a basis from which to extrapolate the relationship between various host and source country factors and the foreign affiliate activity produced by them. This paper exploits the detailed level of the data by introducing sector-specific variables that in turn permit out of sample predictions. Further, the large number of excess zeros in the Eurostat dataset presents added complexity and is addressed using techniques borrowed from the trade literature, which also experiences a “zeros” problem. The dataset produced in this paper also serves as an input into the GTAP-based FDI model of Lakatos and Fukui (2012). This model integrates the foreign affiliate sales dataset produced in this paper into a framework that permits the analysis of the behavior of foreign affiliates within the context of a general equilibrium

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

A Global Database of Foreign Affiliate Activity

This paper produces a new dataset to further the literature on the behavior of multinational firms. The Eurostat database, with a large number of sector-level, bilateral observations on foreign affiliate sales, provides a basis from which to extrapolate the relationships between various host and source country factors and the foreign affiliate activity produced by them. This paper exploits the ...

متن کامل

Strategic Foreign Investments of South Korean Multinationals

Using unpublished data on foreign affiliates of South Korea for 2000-2004, we examine two possible motivations of foreign direct investment (FDI): factor proportion (vertical-FDI) or market access (horizontal-FDI). First of all, we find clear evidence of vertical FDI, which is considered an important part of the overall picture of South Korean FDI. Affiliate sales destined for exporting to the ...

متن کامل

The Proximity-Concentration Tradeoff under Uncertainty

———————————————————————————————————— In this paper we analyze the firm’s choice between serving a foreign market through exports or through foreign affiliate sales in an environment characterized by country-specific shocks to the cost of production. Our model predicts that country pairs with less correlated output fluctuations trade more, relative to affiliate sales, while countries with more v...

متن کامل

Multinational Activity and Country Characteristics in OECD Countries

This paper examines the extent to which country characteristics explain affiliate sales and research and development (R&D) by foreign multinational firms in a sample of 16 OECD countries. Empirical results show that multinational activity is positively related to similarities in size and per capita income between the source and host country, giving support to the model of horizontal multination...

متن کامل

The “Proximity-Concentration” Tradeoff in a Risky Environment∗ [Preliminary]

This paper analyzes the impact of country specific risk on a firm’s choice between serving a foreign market through exports or affiliates sales. We find that country pairs with less correlated business cycles trade more, relative to multinational production. Moreover, the stochastic properties of world output fluctuations affect the cross country patterns of trade flows and foreign affiliate sa...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2012