全球智库信息集成服务系统(G2TT): DP13704 Multinational Expansion in Time and Space

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP13704
	DP13704 Multinational Expansion in Time and Space
	Stefania Garetto; Lindsay Oldenski; Natalia Ramondo
发表日期	2019-04-29
出版年	2019
语种	英语
摘要	This paper studies the expansion patterns of the multinational enterprise (MNE) in time and space. Using a long panel of US MNEs, we document that: MNE affiliates grow by exporting to new markets; the activities of MNE affiliates persist during the affiliate’s life, usually starting with sales to their host market and eventually expanding to export markets; and MNE affiliates’ entry into new locations does not depend on the location of preexisting affiliates. Informed by these facts, we develop a multi-country quantitative dynamic model of the MNE that features heterogeneity in firm-level productivity, persistent aggregate shocks, and a rich structure of costs that affect MNE expansion. Importantly, MNE affiliates can decouple their locations of production and sales, and endogenously choose to enter or exit the host and the export markets. We introduce a compound option formulation that allows us to capture in a tractable way the rich heterogeneity that is observed in the data and that is necessary for quantitative analysis. Using the calibrated model, our quantitative application to Brexit reveals that export platforms are important for understanding the reallocation of MNE activity in time and space, and that the nature of the frictions to MNE activities matters for aggregate firm dynamics.
主题	International Trade and Regional Economics
关键词	Multinational firms Foreign direct investment Firm dynamics Sunk costs
URL	https://cepr.org/publications/dp13704
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/542566
推荐引用方式 GB/T 7714	Stefania Garetto,Lindsay Oldenski,Natalia Ramondo. DP13704 Multinational Expansion in Time and Space. 2019.