Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93001
Authors: 
Georgopoulos, Antonios
Nowak-Lehmann D., Felicitas
Sogiakas, Vasilios
Year of Publication: 
2013
Series/Report no.: 
Discussion Papers, Ibero America Institute for Economic Research 225
Abstract: 
This is one of the first studies which systematically investigate whether specific characteristics of foreign affiliates that reflect their MNE investment motivations prolong or undermine affiliate survivorship when the host country becomes member of a regional economic union. Using a unique database of 162 foreign affiliates established in the era of protectionism (1960-1980) in Greece, we explore the survival evolution of these affiliates within the European integration period (1981-2011). The study poses two research objectives: the exploration of the key characteristics per type of affiliate and the analysis of the impact of the specific characteristics on affiliate survival. We hypothesize and find that when the protected Greek economy enters the European market, closure risk is relatively high for those affiliates which exploit traditional location advantages such as tariffs and unskilled-labor cost, whereas it is relatively low for those units that adjust to the new institutional framework by investing in advertising and human capital intensity. The results have important implications for policy makers and managers.
Subjects: 
survival of MNE affiliates
protectionism
economic integration
Greece
JEL: 
F15
F23
C25
Document Type: 
Working Paper

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