Bernhard Dachs, Georg Zahradnik, 06 July 2014

The Global Crisis brought a halt to three decades of R&D internationalisation, in which foreign firms’ share of total R&D expenditure had increased in almost all countries where data is available. However, this column argues that the crisis did not lead to a new global distribution of overseas R&D expenditure, despite the erosion of the EU’s share. The persistence of R&D expenditure is attributed to the costs of relocating R&D and to the autonomy of foreign subsidiaries.

Theodore Moran, Lindsay Oldenski, 04 March 2014

The US has once again ranked among the top two recipient countries for foreign direct investment. This column examines the effects of these large FDI inflows on the US domestic economy. Foreign multinationals are – alongside US-headquartered American multinationals – the most productive and highest-paying segment of the US economy. In addition, they provide positive spillovers to US firms. About 12% of the total productivity growth in the US from 1987 to 2007 can be attributed to productivity spillovers from inward FDI.

Ayumu Tanaka, 20 November 2013

Policymakers fear the negative employment effects of foreign direct investment. This column provides recent empirical evidence on FDI and domestic employment. The results show that FDI has positive effects on domestic employment. Furthermore, our new empirical research finds a non-negative relationship between Japanese firms' foreign activities and their suppliers' domestic employment.

Theodore Moran, Lindsay Oldenski, 31 October 2013

Criticism of 'offshoring' by US multinationals is widespread among politicians. The underlying assumption is that multinational corporations substitute domestic economic activity for foreign. This column presents evidence that foreign and domestic investment go hand-in-hand at the firm level. This suggests that policies penalising firms for investing abroad will hurt, rather than help, the US economy.

Dominika Langenmayr, 08 September 2013

The realisation that multinational enterprises like Starbucks, Google and Amazon pay few taxes has sparked heated public debate, especially in the UK. This column questions whether widespread low tax payments are a sign of tax avoidance. Perhaps an alternative explanation is that multinational enterprises are able to shift profits abroad even if they fully comply with the law due to features inherent in the fundamentals of generic tax codes and the nature of large international firms.

Olivier Godart, Holger Görg, Christiane Krieger-Boden, 29 April 2013

The positive spillovers from multinationals to the productivity of their host-country suppliers are empirically well established. Usually, it is assumed that multinationals aid their suppliers by voluntarily sharing knowledge and cooperating with them. This column argues the spillovers might rather result from blunt pressure by the multinationals, forcing their suppliers to adopt new practices and to adapt to new standards.

Javier Santiso, 22 February 2010

FDI has fallen dramatically as a result of the global financial crisis. But this column shows that the trend for the decade is still up, suggesting a greater resilience of investment inflows towards emerging markets. Emerging markets are no longer considered a remote and exotic category for European companies; they are now a vital part of the “euro-emerging” multinationals.

Laura Alfaro, Maggie Chen, 08 January 2010

Agglomeration effects are important but difficult to measure. This column uses a new database with precise geographical information to investigate the locational interdependence of multinational firms. Knowledge spillovers and capital- and labour-market externalities exert a significant effect on the co-agglomeration of multinational headquarters, while input-output linkages also play a significant role in the case of subsidiary co-agglomeration.

Harry Huizinga, Luc Laeven, 09 December 2008

It is unfortunate and economically costly if taxation rather than the availability of skilled labour or the quality of infrastructure determine the headquarter location decisions of multinational firms. This column suggests countries would do well to eliminate their international double taxation of foreign source income collectively by, for instance, EU-wide tax reform.

, Harry Huizinga, Luc Laeven, Gaëtan Nicodème, 17 November 2008

Increased globalization and decreased trade barriers worldwide have led an increasing number of corporations to expand their activities internationally. The authors of CEPR DP7047 examine the effects of host and parent country taxation on the location decisions of these multinational corporations using a range of data from 33 European countries.

Valerie Johnson, 02 June 2008

As the United Kingdom debates immigration and assimilation, what does it mean to be British? This column explores the formation of British identity during the early twentieth century, when British multinational enterprises constituted an informal empire engaging many foreign cultures. History shows a far more complicated sense of “Britishness” than some assume.

Nicholas Bloom, Raffaella Sadun, John Van Reenen, 13 May 2007

The US has experienced a sustained increase in productivity growth since the mid-1990s which has not been mirrored in Europe. The majority of this growth has occurred in sectors that either intensively use or produce IT, but while the IT-producing sectors in Europe have matched the growth of their US counterparts, the IT-using sectors (particularly retail, wholesale and financial services) have not.

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