@techreport{Kleinert2005Structural,
abstract = {We derive and estimate an econometric model of export versus foreign
production using firm-level data on foreign activities of German multinationals. Proximity-concentration theory which we derive our model from shows that firms face a trade-off between concentrating their production at home to save on plant set-up costs and producing abroad to save on distance costs. Firms facing this trade-off choose between export and foreign production according to their expected profits. The model is brought to the data using a pooled-probit analysis over the period 1996-1999. We find
support for the proximity-concentration trade-off. In particular, market size and distance affect positively the probability of foreign production whereas fixed costs have a negative impact on the decision to engage in FDI.},
author = {J\"{o}rn Kleinert and Farid Toubal},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F12; F23; 330; Multinational firms; trade; Multinationales Unternehmen; Exportindustrie; Auslandsproduktion; Landesgr\"{o}sse; Transportkosten; Sch\"{a}tzung; Deutschland; Proximity-concentration theory},
language = {eng},
number = {288},
title = {A Structural Model of Export versus Affiliates Production},
type = {T\"{u}binger Diskussionsbeitr\"{a}ge},
url = {http://hdl.handle.net/10419/22088},
year = {2005}
}
