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The Single Market and The Geographical Diversification of Leading Firms in the EU

Author

Listed:
  • Frank Barry

    (University College Dublin)

  • Stephen Pavelin

    (University College Dublin)

Abstract

Geographical diversification describes the degree to which a firm’s operations in a particular industry are dispersed across countries. This paper presents evidence on the geographical diversification within the EU of the 290-odd largest manufacturing firms in Europe. We also explore how geographical diversification changed with the introduction of the Single Market. We highlight differences between firms’ home and foreign operations and study the variation across sectors and across EU countries. Ireland, which began its rapid FDI-fuelled convergence on average EU living standards over our data period, emerges as a special case and receives particular attention.

Suggested Citation

  • Frank Barry & Stephen Pavelin, 2003. "The Single Market and The Geographical Diversification of Leading Firms in the EU," Working Papers 200305, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:200305
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    File URL: http://www.ucd.ie/economics/research/papers/2003/WP03.05.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. J. Peter Neary, 2002. "Foreign Direct Investment and the Single Market," Manchester School, University of Manchester, vol. 70(3), pages 291-314, June.
    3. Huizinga, Harry, 1990. "Unions, taxes and the structure of multinational enterprises," Economics Letters, Elsevier, vol. 34(1), pages 73-75, September.
    4. James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 169-189, Spring.
    5. Barry, Frank & Bradley, John, 1997. "FDI and Trade: The Irish Host-Country Experience," Economic Journal, Royal Economic Society, vol. 107(445), pages 1798-1811, November.
    6. K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers 2008 - 2015 142, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    7. James R. Markusen, 1998. "Multinational Firms, Location and Trade," The World Economy, Wiley Blackwell, vol. 21(6), pages 733-756, August.
    8. Frank Barry & John Bradley & Aoife Hannan, 2001. "The Single Market, the Structural Funds and Ireland's Recent Economic Growth," Journal of Common Market Studies, Wiley Blackwell, vol. 39(3), pages 537-552, September.
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    Cited by:

    1. Frank Barry & Aoife Hannan & Ciara Whelan, 2002. "Product characteristics and the growth of FDI," Working Papers 200217, School of Economics, University College Dublin.
    2. Lawless, Martina, 2006. "Geography and Firm Exports: New Evidence on Sunk Costs," MPRA Paper 10006, University Library of Munich, Germany.
    3. repec:got:cegedp:58 is not listed on IDEAS
    4. Frank Barry and Rosemary Healy-Rae, 2008. "FDI Implications of Recent European Court of Justice Decision on Corporation Tax Matters," The Institute for International Integration Studies Discussion Paper Series iiisdp270, IIIS.
    5. Neary, J. Peter, 2009. "Trade costs and foreign direct investment," International Review of Economics & Finance, Elsevier, vol. 18(2), pages 207-218, March.
    6. Köller, Mareike, 2006. "Ausländische Direktinvestitionen in Irland: Eine theoriegestützte Analyse," University of Göttingen Working Papers in Economics 58, University of Goettingen, Department of Economics.

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    More about this item

    Keywords

    Single Market; Geographical Diversification; FDI; Multinational Corporations;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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