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
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: Suggested Citation