Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/109124
Authors: 
Heyman, Fredrik
Norbäck, Pehr-Johan
Hammarberg, Rickard
Year of Publication: 
2014
Series/Report no.: 
IFN Working Paper 1041
Abstract: 
This paper examines whether and, if so, why source country heterogeneity exists in foreign direct investment (FDI). Using detailed data on all Swedish firms for the period from 1996 to 2009, we find statistical evidence that affiliate performance differs systematically across source countries. For instance, affiliates of US multinational enterprises (MNEs) are, on average, approximately three times more productive than affiliates headquartered in the Nordic countries. One possible explanation for these discrepancies is differences in organization practices across source countries. Using new firm-level data from the World Management Survey to estimate a global index of the quality of management practices for MNEs with headquarters in our source countries of interest, we find that source country heterogeneity in affiliate performance is highly correlated with differences in management practices.
Subjects: 
Multinational firms
FDI
Management practices
Firm performance
JEL: 
F21
F23
L10
M10
Document Type: 
Working Paper

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