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Correlation between Sales of Foreign Affiliates and Productivity of Multinational Firms: Evidence from Korean Firm-Level Data

Author

Listed:
  • Hur , Jung

    (Sogang University)

  • Lee , Jiwon

    (Sogang University)

  • Hyun , Hea-Jung

    (Kyung Hee University)

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.

Suggested Citation

  • Hur , Jung & Lee , Jiwon & Hyun , Hea-Jung, 2013. "Correlation between Sales of Foreign Affiliates and Productivity of Multinational Firms: Evidence from Korean Firm-Level Data," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 17(3), pages 261-279, September.
    • Handle: RePEc:ris:eaerev:0054
    DOI: 10.11644/KIEP.JEAI.2013.17.3.266
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    Cited by:

    1. Michael Moritz & Veronika Hecht & Patricia Noska & Johannes Schaffler, 2020. "Types of FDI and Determinants of Affiliate Size: the Classification Makes the Difference," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 70(4), pages 312-331, October.

    More about this item

    Keywords

    Foreign Direct Investment; Multinationals; Firm Productivity; Location Decision;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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