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Reconsidering the concentration of US MNE activity: Is it global, regional or national?

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  • Walid Hejazi

    (University of Toronto)

Abstract

Abstract and Key Results Several recent papers by Rugman and his colleagues have improved our understanding of the regional concentration in the activities of the world’s largest 500 MNEs. The current paper extends this literature in two dimensions. First, a formal statistical analysis is undertaken to test whether patterns of US MNE assets, sales, income, and employment are consistent with a transactions cost interpretation. Second, this paper allows for the national dimension, defined as activities inside the home country, to be a possible explanation of regional concentrations of MNE activity. The evidence robustly shows that regional concentrations in US MNE activity are driven by the national dimension. The analysis also indicates that these national concentrations have not hindered US MNE access to important global markets — that is, US MNE managers have gotten it right. As such, there should be no attempt to increase US MNE activity globally stemming solely from a large concentration in the home region.

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  • Walid Hejazi, 2007. "Reconsidering the concentration of US MNE activity: Is it global, regional or national?," Management International Review, Springer, vol. 47(1), pages 5-27, February.
    • Handle: RePEc:spr:manint:v:47:y:2007:i:1:d:10.1007_s11575-007-0002-8
    DOI: 10.1007/s11575-007-0002-8
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    References listed on IDEAS

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    3. Sjoerd Beugelsdijk & Jean-François Hennart & Arjen Slangen & Roger Smeets, 2010. "Why and how FDI stocks are a biased measure of MNE affiliate activity," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(9), pages 1444-1459, December.
    4. Elitsa R. Banalieva & Michael D. Santoro & Joy Ruihua Jiang, 2012. "Home Region Focus and Technical Efficiency of Multinational Enterprise," Management International Review, Springer, vol. 52(4), pages 493-518, August.
    5. Alan M. Rugman & Alain Verbeke & Quyen T. K. Nguyen, 2011. "Fifty Years of International Business Theory and Beyond," Management International Review, Springer, vol. 51(6), pages 755-786, December.
    6. Berrill, Jenny & Mannella, Giancarlo, 2013. "Are firms from developed markets more international than firms from emerging markets?," Research in International Business and Finance, Elsevier, vol. 27(1), pages 147-161.
    7. Patrik Vanek, 2022. "Aspects of Measuring Firm-Level Multinationality," MENDELU Working Papers in Business and Economics 2022-83, Mendel University in Brno, Faculty of Business and Economics.
    8. Gulamhussen, Mohamed Azzim & Hennart, Jean-François & Pinheiro, Carlos Manuel, 2016. "What drives cross-border M&As in commercial banking?," Journal of Banking & Finance, Elsevier, vol. 72(S), pages 6-18.
    9. William Q. Judge & Yuping Liu–Thompkins & J. Lee Brown & Chatdanai Pongpatipat, 2015. "The Impact of Home Country Institutions on Corporate Technological Entrepreneurship via R&D Investments and Virtual World Presence," Entrepreneurship Theory and Practice, , vol. 39(2), pages 237-266, March.
    10. Arjen H. L. Slangen & Sjoerd Beugelsdijk & Jean-Francois Hennart, 2011. "The Impact of Cultural Distance on Bilateral Arm’s Length Exports," Management International Review, Springer, vol. 51(6), pages 875-896, December.
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