Firm Heterogeneity, Industry Characteristics and Types of FDI: The Case of German FDI in the Czech Republic

Konferenzbeitrag

In addition to firm and industry characteristics, the heterogeneity of foreign direct investment (FDI) has to be taken into account when analyzing the determinants of outward FDI. We combine two firm-specific datasets on German firms with subsidiaries and joint ventures in the Czech Republic, compared to a control group of German firms without FDI in this host country. The impact of firm and industry characteristics on FDI decisions is assessed by estimating two-step Heckman models. We find that larger, more productive and more experienced firms are more likely to invest in the Czech Republic. Firm characteristics also affect the size of FDI. However, the relevance of firm and industry characteristics differs between the manufacturing and services sectors and depends on whether FDI is horizontal or vertical.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Empirical Studies of Foreign Direct Investment ; No. D4-V2

Classification and Topics

• Classification: Wirtschaft ; Multinational Firms; International Business ; Firm Objectives, Organization, and Behavior: General ; Organization of Production
• Subject: multinational enterprises ; firm heterogeneity ; industry characteristics ; sectorspecific FDI ; vertical and horizontal FDI

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mühlen, Henning ; Görg, Holger ; Nunnenkamp, Peter
• Event: Veröffentlichung
• (who): Verein für Socialpolitik
• (where): Frankfurt a. M.
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/37268
• Last update: 10.03.2025, 11:43 AM CET