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Productivity Effects of United States Multinational Enterprises: The Roles of Market Orientation and Regional Integration

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  • Roger Smeets
  • Yingqi Wei

Abstract

Smeets R. and Wei Y. Productivity effects of United States multinational enterprises: the roles of market orientation and regional integration, Regional Studies. This paper considers the role of market orientation and regional integration in foreign direct investment (FDI) productivity effects. Using data of United States multinational enterprises operating in eight industries and thirteen Organisation for Economic Co-operation and Development (OECD) countries during 1987-2003, the productivity effects of local market-oriented FDI versus export-oriented FDI are compared, with the latter being split into FDI oriented at the parent and that at parties in third countries. Their productivity effects are also considered within two regional agreements: the Canadian-United States Free Trade Agreement (CUSFTA) and the European Union. Robust positive horizontal effects of parent firm-oriented FDI and third-country-oriented FDI are found, with notable differences in the effects of these FDI types between CUSFTA and the European Union. [image omitted] Smeets R. et Wei Y. Les effets productivite des societes multinationales aux Ue: le role de l'orientation marche et de l'integration regionale, Regional Studies. Cet article cherche a evaluer le role de l'orientation marche et de l'integration regionale dans les effets productivite de l'IDE. A partir des donnees sur les societes multinationales aux E-U installees dans huit industries et treize pays-membres de l'OCDE entre 1987 et 2003, on compare les effets productivite de l'IDE oriente vers le marche local a l'IDE a vocation exportatrice, ce dernier etant divise entre l'IDE oriente vers la maison-mere et celui qui est oriente vers des partenaires situees dans des pays tiers. On considere aussi leurs effets productivite dans deux zones regionales: a savoir, la CUSFTA (la zone du libre-echange entre le Canada et les Etats-Unis) et l'Ue. Il s'avere des effets horizontaux positifs soutenus quant a l'IDE oriente vers la maison-mere et les pays tiers, y compris d'importantes differences des effets de ces categories d'IDE entre la CUSFTA et l'Ue. Retombees IDE Orientation marche Integration regionale Smeets R. und Wei Y. Produktivitatseffekte multinationaler Unternehmen in den USA: die Rolle der Marktorientierung und regionalen Integration, Regional Studies. In diesem Beitrag untersuchen wir die Rolle der Marktorientierung und regionalen Integration auf die Produktivitatseffekte auslandischer Direktinvestitionen. Anhand der Daten US-amerikanischer multinationaler Unternehmen, die zwischen 1987 und 2003 in acht Branchen und 13 OECD-Staaten tatig waren, vergleichen wir die Produktivitatseffekte von am lokalen Markt orientierten Auslandsdirektinvestitionen mit denen von exportorientierten Auslandsdirektinvestitionen, wobei in der zweiten Kategorie zwischen Investitionen, die sich an der Muttergesellschaft orientieren, und Investitionen, die sich an Parteien in Drittlandern orientieren, unterschieden wurde. Ebenso untersuchen wir die Auswirkungen auf die Produktivitat innerhalb von zwei Regionalabkommen: dem CUSFTA und der EU. Wir finden robuste positive horizontale Auswirkungen auf die muttergesellschafts- und drittlandorientierten Auslandsdirektinvestitionen, wobei sich im Vergleich zwischen CUSFTA und EU deutliche Unterschiede hinsichtlich der Auswirkungen dieser Arten von Auslandsdirektinvestitionen zeigen. Ubertragungen durch Auslandsdirektinvestitionen Marktorientierung Regionale Integration Smeets R. y Wei Y. Efectos de productividad de empresas multinacionales de los Estados Unidos: los roles de la orientacion mercantil y la integracion regional, Regional Studies. En este articulo analizamos el papel de la orientacion mercantil y la integracion regional en los efectos de productividad de la Inversion Directa Extranjera (IDE). Con ayuda de datos de empresas multinacionales estadounidenses que operaron en 8 industrias y 13 paises de la OCDE durante 1987-2003, comparamos los efectos de la productividad de la IDE en mercados locales con la IDE en mercados de exportacion, esta ultima dividida entre la IDE para sociedades matrices y partidos en paises terceros. Asimismo consideramos sus efectos de productividad en el marco de dos acuerdos regionales: el CUSFTA (Tratado de Libre Comercio entre Canada y Estados Unidos) y la UE. Observamos solidos efectos horizontales positivos de la IDE en sociedades matrices y la IDE en paises terceros, con notables diferencias en los efectos de estos tipos de IDE entre el CUSFTA y la UE. Desbordamientos de la IDE Orientacion mercantil Integracion regional

Suggested Citation

  • Roger Smeets & Yingqi Wei, 2010. "Productivity Effects of United States Multinational Enterprises: The Roles of Market Orientation and Regional Integration," Regional Studies, Taylor & Francis Journals, vol. 44(8), pages 949-963.
    • Handle: RePEc:taf:regstd:v:44:y:2010:i:8:p:949-963
    DOI: 10.1080/00343400903401600
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    References listed on IDEAS

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    1. B. Merlevede & K. Schoors, 2006. "FDI and the Consequences Towards more complete capture of spillover effects," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 06/372, Ghent University, Faculty of Economics and Business Administration.
    2. James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078, April.
    3. Christopher F Baum, 2006. "An Introduction to Modern Econometrics using Stata," Stata Press books, StataCorp LP, number imeus, March.
    4. Jürgen Bitzer & Holger Görg, 2009. "Foreign Direct Investment, Competition and Industry Performance," The World Economy, Wiley Blackwell, vol. 32(2), pages 221-233, February.
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    2. Jue Wang & Yingqi Wei & Xiaming Liu & Chengang Wang & Hua Lin, 2014. "Simultaneous Impact of the Presence of Foreign MNEs on Indigenous Firms’ Exports and Domestic Sales," Management International Review, Springer, vol. 54(2), pages 195-223, April.
    3. Markus Leibrecht & Aleksandra Riedl, 2014. "Modeling FDI based on a spatially augmented gravity model: Evidence for Central and Eastern European Countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(8), pages 1206-1237, December.

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