The browser you are using is not supported by this website. All versions of Internet Explorer are no longer supported, either by us or Microsoft (read more here: https://www.microsoft.com/en-us/microsoft-365/windows/end-of-ie-support).

Please use a modern browser to fully experience our website, such as the newest versions of Edge, Chrome, Firefox or Safari etc.

Porträttfoto

Joakim Gullstrand

Dean, Professor

Porträttfoto

Exploring outward FDI and the choice of destination: Evidence from Swedish firm-level data

Author

  • Joakim Gullstrand
  • Zouheir El-Sahli
  • Karin Olofsdotter

Summary, in English

Using Swedish firm-level data on all firms and their affiliates abroad, we investigate what observable firm and country characteristics affect the size of an affiliate in a particular destination. We employ the richness of the data to investigate the importance of destination country factors in explaining firm outward FDI activities and distinguish between the factors that affect such activities in manufacturing versus services firms as well as vertical versus horizontal investments. Our results lend support to existing theories of multinational activity of manufacturing but not services firms. We also find observable differences between vertical and horizontal manufacturing firms that are not always explained by theory.

Department/s

  • Department of Economics

Publishing year

2018-10-07

Language

English

Pages

1222-1225

Publication/Series

Applied Economics Letters

Volume

25

Issue

17

Document type

Journal article

Publisher

Routledge

Topic

  • Economics

Keywords

  • outward FDI
  • globalization
  • FDI destination
  • heterogeneous firms

Status

Published

ISBN/ISSN/Other

  • ISSN: 1466-4291