Multinational Activity and Country Characteristics in OECD Countries
نویسنده
چکیده
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 multinational production and confirming findings in previous studies using U.S. or Swedish data, such as Ekholm (1998), Brainard (1997), and Markusen and Maskus (1999). Furthermore, this study finds that much overseas R&D by multinationals can be explained by foreign affiliate sales and the host country’s technological advantage.
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