Globalisation , Productivity and Technology Research Paper 2009 / 27 Why are Multinationals “ Footloose ” ?
نویسندگان
چکیده
This paper investigates why multinational ownership is found to increase the probability that a plant will exit. It does so by using Japanese plant data linked to firm data. Plants belonging to a multinational are 9 percentage points more likely to exit when plant, firm and industry characteristics are conditioned on. We find that the “footloose” effect is attributable to multinationals closing their weakest plants. Plants that are small, capital un-intensive and have low input intensities relative to the firm are more vulnerable to closure within multinationals. We also find a strong similarity between the plants that are shut by multiplant firms regardless of whether they have overseas affiliates or not. JEL classification: D21, D24, F15, F23, L20, L6
منابع مشابه
Why are Multinationals ‘Footloose’?
Conclusions The ‘footloose’ effect of MNE ownership is attributable to the nature of the plants they close. Multinationals are more likely to close plants that are weakest relative to the firm. There is a high degree of similarity between the plants closed by multiplant firms regardless of whether they are MNE or not. However, MNEs offshore high wage plants while domestic multiplant firms outso...
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