Francesca Spinelli, Dorothée Rouzet, Hongyong Zhang, 03 April 2020

Multinational firms face complex decisions regarding where and how to set up their activity. Their location choices also take into account complementarities between activities and between markets. This column uses micro-data on Japanese foreign affiliates to shed light on what drives these complex location strategies for Japanese multinationals, and argues that policies to foster FDI attractiveness, especially to be chosen as the location of export platforms, need to take into account these complementarities. 

Stefania Garetto, Lindsay Oldenski, Natalia Ramondo, 08 October 2019

Multinational enterprises play an important role in coordinating production around the globe. This column presents a dynamic quantitative model of multinational enterprise expansion that can be used to analyse the effects of policies that affect the cost of the operations of such firms. It uses this model to estaimte the impact of potential implementations of Brexit.

Peter Egger, Georg Wamser, 07 October 2015

Controlled foreign company rules are implemented by countries to prevent adverse profit-shifting activities by multinationals. This column suggests there are unintended consequences of such rules for real investment activity. Using the case of German legislation, the authors find that fixed assets at foreign subsidiaries decline by about €7 million per subsidiary in response to controlled foreign company treatment.

Philippe Gugler, 23 August 2008

Chinese enterprises are making high profile forays into foreign markets. While these firms’ motivations are explained by traditional theories of multinational enterprises, this column identifies notable characteristics of many Chinese companies that make them distinct. China’s cultural context, market structures, and resources may necessitate changing our thinking about multinational enterprises’ strategies and motives.

Alexander Hijzen, 04 August 2008

Multinational enterprises’ foreign labour practices frequently come under fire. This column presents new evidence on how foreign takeovers affect workers’ wages and non-wage working conditions. The results suggest foreign investment is worth encouraging.

CEPR Policy Research