Firm Heterogeneity and the Structure of U.S. Multinational Activity: An Empirical Analysis

30 Pages Posted: 12 Jun 2008 Last revised: 19 Jun 2008

See all articles by Stephen R. Yeaple

Stephen R. Yeaple

Pennsylvania State University - College of the Liberal Arts - Department of Economic; National Bureau of Economic Research (NBER)

Date Written: June 2008

Abstract

We use firm-level data for U.S. multinational enterprises (MNE) and the model of firm heterogeneity first presented in Helpman, Melitz, and Yeaple (2004) to make four empirical contributions. First, we show that the most productive U.S. firms invest in a larger number of foreign countries and sell more in each country in which they operate. Second, we assess the importance of firm heterogeneity in the structure of MNE activity. Third, we use the model to identify the mechanisms through which country characteristics affect the structure of MNE activity. Finally, we provide a systematic assessment of the model's shortcomings in order to inform the development of new theory.

Suggested Citation

Yeaple, Stephen R., Firm Heterogeneity and the Structure of U.S. Multinational Activity: An Empirical Analysis (June 2008). NBER Working Paper No. w14072. Available at SSRN: https://ssrn.com/abstract=1143983

Stephen R. Yeaple (Contact Author)

Pennsylvania State University - College of the Liberal Arts - Department of Economic ( email )

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National Bureau of Economic Research (NBER)

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