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Sectoral Determinants of Foreign Affiliate Sales

Author

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  • Eddy Bekkers
  • Indre Macskasi

Abstract

We test recent theories on sectoral determinants of foreign affiliate sales employing European foreign affiliate sales statistics (FATS). On the one hand, we test hypotheses by Oldenski (2012) that foreign affiliate sales are less likely in sectors with complex tasks and more likely in sectors where communication with customers is important. On the other hand, we test the hypothesis by Keller and Yeaple (2013) that the force of gravity is stronger in more complex sectors. Employing Poisson and Negative Binomial estimators, we find support for the hypotheses in Oldenski (2012) and contradict the hypothesis in Keller and Yeaple (2013).

Suggested Citation

  • Eddy Bekkers & Indre Macskasi, 2015. "Sectoral Determinants of Foreign Affiliate Sales," Economics working papers 2015-07, Department of Economics, Johannes Kepler University Linz, Austria.
    • Handle: RePEc:jku:econwp:2015_07
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    References listed on IDEAS

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    More about this item

    Keywords

    Affiliate Sales; European Affiliate Sales Data; Task Complexity; Communication with Customers; Gravity of Knowledge;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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