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FDI Determinant Factors: The Case of Catalan Multinational Manufacturing Firms

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  • Montserrat Álvarez

    (Institut d'Economia de Barcelona (IEB); Universitat de Barcelona (UB))

Abstract

In recent years, and for the first time in Spanish economic history, outward direct investment flows outweigh inward flows. Catalan manufacturing not only mirrors this pattern, but also represents a high proportion of all Spanish manufacturing outward direct investment. In this paper, we analyse the factors that determine outward direct investment by Catalan manufacturing firms. We apply Dunning's eclectic paradigm, which distinguishes between ownership, internalisation and location advantages. In applied studies, these advantages have usually been approximated by variables relating to the investing firm and variables about host countries. Our research endeavours to identify which of these variables determine the probability of a manufacturing Catalan firm to own production subsidiaries overseas.

Suggested Citation

  • Montserrat Álvarez, 2003. "FDI Determinant Factors: The Case of Catalan Multinational Manufacturing Firms," Working Papers 2003/4, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2003-4
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    References listed on IDEAS

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    More about this item

    Keywords

    Catalonia; Eclectic paradigm; Foreign direct investment; Multinational interprises;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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