Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71855
Authors: 
Oberhofer, Harald
Pfaffermayr, Michael
Year of Publication: 
2010
Series/Report no.: 
Working Papers in Economics and Finance, University of Salzburg 2010-07
Abstract: 
This paper formulates an econometric firm growth model that explicitly accounts for interdependence of growth performance within multinational corporate networks. We apply a recently introduced IV-estimation procedure for peer group effects to directly test for externalities within multinational corporate networks. Using European firm level data, our results reveal positive externalities within vertically organized multinational networks, while they are negative for horizontally organized ones. In the former case, multinational corporate groups are more stable and adjust faster on average. In the latter case, externalities lead to more heterogeneity in the firm growth processes within the network and slower average size adjustment.
Subjects: 
Firm growth
Size Adjustment
Multinational Corporate Groups
Peer Group Effect Estimation
JEL: 
C21
F23
L23
L25
Document Type: 
Working Paper

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