Multinationals and plant survival
2010 (English)In: Review of World Economics, ISSN 1610-2878, E-ISSN 1610-2886, Vol. 146, no 4, 609-634 p.Article in journal (Refereed) Published
The aim of this paper is twofold: first, to investigate how different ownership structures affect plant survival, and second, to analyze how the presence of foreign multinational enterprises (MNEs) affects domestic plants’ survival. Using a unique and detailed data set on the Swedish manufacturing sector, I am able to separate plants into those owned by foreign MNEs, domestic MNEs, exporting non-MNEs, and purely domestic firms. In line with previous findings, the result, when conditioned on other factors affecting survival, shows that foreign MNE plants have lower survival rates than non-MNE plants. However, separating the non-MNEs into exporters and non-exporters, the result shows that foreign MNE plants have higher survival rates than non-exporting non-MNEs, while the survival rates of foreign MNE plants and exporting non-MNE plants do not seem to differ. Moreover, the simple non-parametric estimates show that domestic MNE plants are more likely to exit the market than other plants, also when controlling for plant-specific differences. Finally, foreign presence in the market seems to have had a negative impact on the survival rate of plants in non-exporting non-MNEs, but not to have affected plants in exporting non-MNEs or plants in domestic MNEs.
Place, publisher, year, edition, pages
Springer, 2010. Vol. 146, no 4, 609-634 p.
Survival; Multinational enterprises; Heterogeneity
IdentifiersURN: urn:nbn:se:liu:diva-114808DOI: 10.1007/s10290-010-0068-4ISI: 000285097600001OAI: oai:DiVA.org:liu-114808DiVA: diva2:792575