Multinational versus national firms on capital adjustment costs: A structural approach

Arbeitspapier

This paper provides a different perspective on the firm-level empirical analysis of the relation between foreign ownership and capital demand adjustment in host countries. The author estimates a dynamic structural model of investment on a sample of 4672 Belgian firms observed between 2003 and 2010 that permits to distinguish the 'ownership status' of firms. He considers a dynamic discrete choice model of a general specification of adjustment costs including convex and nonconvex components. He uses the method of simulated moments procedure to estimate the structural parameters. The results indicate that multinational's affiliates face lower capital adjustment costs than national firms.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Economics Discussion Papers ; No. 2015-20

Classification and Topics

• Classification: Wirtschaft ; Multinational Firms; International Business ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity ; Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
• Subject: Multinational Firms ; Investment ; Capital Adjustment Costs

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lapatinas, Athanasios
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/109219