Correlation between Sales of Foreign Affiliates and Productivity of Multinational Firms: Evidence from Korean Firm-Level Data

19 Pages Posted: 2 Oct 2013 Last revised: 8 Nov 2016

See all articles by Jung Hur

Jung Hur

affiliation not provided to SSRN

Jiwon Lee

Sogang University - Department of Economics

Hea-Jung Hyun

Kyung-Hee University

Date Written: September 30, 2013

Abstract

Using firm-level panel data for Korean multinational enterprises (MNEs), we make a distinction between being the only affiliate of a parent firm and being one of the multiple affiliates of a parent firm. In particular, we attempt to find a correlation between the sales of foreign affiliates and the productivity of multinational firms. Our main empirical results in this paper suggest that productive Korean MNEs would enlarge the number of affiliates in the host country.

Keywords: Foreign Direct Investment, Multinationals, Firm Productivity, Location Decision

JEL Classification: F23, D22, O53

Suggested Citation

Hur, Jung and Lee, Jiwon and Hyun, Hea-Jung, Correlation between Sales of Foreign Affiliates and Productivity of Multinational Firms: Evidence from Korean Firm-Level Data (September 30, 2013). Journal of East Asian Economic Integration, Vol.17, No.3, (September) 261-279, Available at SSRN: https://ssrn.com/abstract=2334650

Jung Hur (Contact Author)

affiliation not provided to SSRN

Jiwon Lee

Sogang University - Department of Economics ( email )

35 Baekbeom-ro
Seoul, 121-742
Korea, Republic of (South Korea)

Hea-Jung Hyun

Kyung-Hee University ( email )

Dongdaemun-ku
Seoul, Gyeonggi-Do 446-701
Korea, Republic of (South Korea)

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