Organizational Forms for Global Engagement of Firms

University of Nottingham, GEP Research Paper 2008/33

20 Pages Posted: 14 Aug 2009

See all articles by Spiros Bougheas

Spiros Bougheas

University of Nottingham - School of Economics

Holger Görg

University of Kiel; Kiel Institute for the World Economy

Date Written: August 13, 2008

Abstract

Global engagement of firms can take a variety of forms. We argue that there are considerable advantages of developing models that allow for a wide set of alternatives of organizational form. We illustrate this firstly using plant level data which allows us to distinguish firms that serve only the domestic market, firms that export final goods abroad, firms that outsource abroad the production of some of the intermediate inputs abroad, firms that own foreign plants abroad, and firms that do more than one of those activities. In our estimation we consider the relationship between productivity all the choice of organizational form. We then present a simple model of the firm that is flexible enough to capture the trade-offs between a great variety of organizational forms.

Keywords: organizational forms, multinationals

JEL Classification: F21, F23

Suggested Citation

Bougheas, Spiros and Gorg, Holger, Organizational Forms for Global Engagement of Firms (August 13, 2008). University of Nottingham, GEP Research Paper 2008/33. Available at SSRN: https://ssrn.com/abstract=1448554 or http://dx.doi.org/10.2139/ssrn.1448554

Spiros Bougheas (Contact Author)

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom

Holger Gorg

University of Kiel ( email )

Olshausenstr. 40
D-24118 Kiel, Schleswig-Holstein 24118
Germany

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, Schleswig-Hosltein D-24100
Germany

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