Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/56300
Authors: 
Mathä, Thomas
Year of Publication: 
2000
Series/Report no.: 
SSE/EFI Working Paper Series in Economics and Finance 416
Abstract: 
Both proximity-concentration trade-off and factor proportions explanations have been forwarded to explain the existence of multinational enterprises. This paper analyses to what extent these different explanations are supported empirically, in making a first attempt to distinguish explicitly between horizontally and vertically integrated multinationals. The affiliate production share of horizontally integrated multinationals is mainly explained by low plant-level economies of scale, large host country size and similarities in relative factor endowments. Differences for vertical multinationals appear with regard to firm- and plant-level economies of scale, country size, trade costs and relative factor endowments at the national and sectoral level.
Subjects: 
Trade Costs
Country Size
Factor Endowments
Horizontal & Vertical Multinationals
JEL: 
F12
F21
F23
Document Type: 
Working Paper

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