Scope, scale, and locational preferences: an analysis of emerging multinationals

This paper aims to examine the case of emerging multinationals, using a large sample of Spanish parent-subsidiary links obtained from ORBIS Bureau van Dijk. Three characteristics of multinational frms are specifcally considered: their scope, scale, and location decisions. Our results confrm that mor...

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Detalles Bibliográficos
Autores: Fariñas García, José Carlos, Moreno Martín, María Lourdes, Martín-Marcos, Ana
Tipo de recurso: artículo
Fecha de publicación:2025
País:España
Institución:Universidad Complutense de Madrid (UCM)
Repositorio:Docta Complutense
Idioma:inglés
OAI Identifier:oai:docta.ucm.es:20.500.14352/124827
Acceso en línea:https://hdl.handle.net/20.500.14352/124827
Access Level:acceso abierto
Palabra clave:334.726
Multinational firms
Firm heterogeneity
Productivity
Location decision
Administración de empresas
Empresas
Econometría (Economía)
5311.07 Investigación Operativa
5311 Organización y Dirección de Empresas
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oai_identifier_str oai:docta.ucm.es:20.500.14352/124827
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network_name_str España
repository_id_str
spelling Scope, scale, and locational preferences: an analysis of emerging multinationalsFariñas García, José CarlosMoreno Martín, María LourdesMartín-Marcos, Ana334.726Multinational firmsFirm heterogeneityProductivityLocation decisionAdministración de empresasEmpresasEconometría (Economía)5311.07 Investigación Operativa5311 Organización y Dirección de EmpresasThis paper aims to examine the case of emerging multinationals, using a large sample of Spanish parent-subsidiary links obtained from ORBIS Bureau van Dijk. Three characteristics of multinational frms are specifcally considered: their scope, scale, and location decisions. Our results confrm that more productive frms engage in greater multinational activity in terms of their scope (the number of foreign markets in which they invest) and scale (the volume of local sales by subsidiaries in foreign markets). The structure of multinational firms’ activity is also analyzed from the perspective of host country characteristics. Distance and the relative labor costs of the host country are negatively related to the scope of foreign direct investment decisions, whereas the presence of a common language, host country size, and institutional quality positively infuence decisions to invest abroad. In the manufacturing sector, host country tarifs positively correlate with the scope of multinational firms’ operations, whereas regulatory trade barriers in host countries negatively infuence investment decisions in the services sector. These results are robust to the control of endogeneity between parent firms’ productivity and both the scope and scale of subsidiaries abroad.Springer NatureUniversidad Complutense de Madrid20252025-02-0120252025-02-01journal articlehttp://purl.org/coar/resource_type/c_6501VoRhttp://purl.org/coar/version/c_970fb48d4fbd8a85info:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/20.500.14352/124827reponame:Docta Complutenseinstname:Universidad Complutense de Madrid (UCM)Inglésengopen accesshttp://purl.org/coar/access_right/c_abf2Attribution-NonCommercial-NoDerivatives 4.0 Internationalhttp://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccessoai:docta.ucm.es:20.500.14352/1248272026-06-02T12:44:21Z
dc.title.none.fl_str_mv Scope, scale, and locational preferences: an analysis of emerging multinationals
title Scope, scale, and locational preferences: an analysis of emerging multinationals
spellingShingle Scope, scale, and locational preferences: an analysis of emerging multinationals
Fariñas García, José Carlos
334.726
Multinational firms
Firm heterogeneity
Productivity
Location decision
Administración de empresas
Empresas
Econometría (Economía)
5311.07 Investigación Operativa
5311 Organización y Dirección de Empresas
title_short Scope, scale, and locational preferences: an analysis of emerging multinationals
title_full Scope, scale, and locational preferences: an analysis of emerging multinationals
title_fullStr Scope, scale, and locational preferences: an analysis of emerging multinationals
title_full_unstemmed Scope, scale, and locational preferences: an analysis of emerging multinationals
title_sort Scope, scale, and locational preferences: an analysis of emerging multinationals
dc.creator.none.fl_str_mv Fariñas García, José Carlos
Moreno Martín, María Lourdes
Martín-Marcos, Ana
author Fariñas García, José Carlos
author_facet Fariñas García, José Carlos
Moreno Martín, María Lourdes
Martín-Marcos, Ana
author_role author
author2 Moreno Martín, María Lourdes
Martín-Marcos, Ana
author2_role author
author
dc.contributor.none.fl_str_mv Universidad Complutense de Madrid
dc.subject.none.fl_str_mv 334.726
Multinational firms
Firm heterogeneity
Productivity
Location decision
Administración de empresas
Empresas
Econometría (Economía)
5311.07 Investigación Operativa
5311 Organización y Dirección de Empresas
topic 334.726
Multinational firms
Firm heterogeneity
Productivity
Location decision
Administración de empresas
Empresas
Econometría (Economía)
5311.07 Investigación Operativa
5311 Organización y Dirección de Empresas
description This paper aims to examine the case of emerging multinationals, using a large sample of Spanish parent-subsidiary links obtained from ORBIS Bureau van Dijk. Three characteristics of multinational frms are specifcally considered: their scope, scale, and location decisions. Our results confrm that more productive frms engage in greater multinational activity in terms of their scope (the number of foreign markets in which they invest) and scale (the volume of local sales by subsidiaries in foreign markets). The structure of multinational firms’ activity is also analyzed from the perspective of host country characteristics. Distance and the relative labor costs of the host country are negatively related to the scope of foreign direct investment decisions, whereas the presence of a common language, host country size, and institutional quality positively infuence decisions to invest abroad. In the manufacturing sector, host country tarifs positively correlate with the scope of multinational firms’ operations, whereas regulatory trade barriers in host countries negatively infuence investment decisions in the services sector. These results are robust to the control of endogeneity between parent firms’ productivity and both the scope and scale of subsidiaries abroad.
publishDate 2025
dc.date.none.fl_str_mv 2025
2025-02-01
2025
2025-02-01
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
VoR
http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/20.500.14352/124827
url https://hdl.handle.net/20.500.14352/124827
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution-NonCommercial-NoDerivatives 4.0 International
http://creativecommons.org/licenses/by-nc-nd/4.0/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution-NonCommercial-NoDerivatives 4.0 International
http://creativecommons.org/licenses/by-nc-nd/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Springer Nature
publisher.none.fl_str_mv Springer Nature
dc.source.none.fl_str_mv reponame:Docta Complutense
instname:Universidad Complutense de Madrid (UCM)
instname_str Universidad Complutense de Madrid (UCM)
reponame_str Docta Complutense
collection Docta Complutense
repository.name.fl_str_mv
repository.mail.fl_str_mv
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