Corporate Growth and FDI: Are Multinationals Stimulating Local Industrial Development?

36 Pages Posted: 8 Feb 2002

See all articles by Georgios Fotopoulos

Georgios Fotopoulos

University of Patras - Department of Economics

Helen Louri

Athens University of Economics and Business - Department of Economics

Date Written: January 2002

Abstract

The aim of this Paper is to improve our understanding of the empirical determinants of corporate growth by extending the literature to include a new group of variables related to FDI, namely the degree of foreign ownership and technology spillovers. Based on recent developments in the field, our analysis takes also into account the role of sunk costs and financial structure, while quantile regression techniques as more suitable to the data available (2640 manufacturing firms operating in Greece in the 1992-97 period) are used. Our findings highlight the role of multinationals in increasing corporate growth with varying intensity depending on industry groups and regression quantiles, and vindicate the use of new variables.

Keywords: Corporate growth, multinational firms, spillovers, quantile regression

JEL Classification: F23, L11

Suggested Citation

Fotopoulos, Georgios and Louri, Eleni (Helen), Corporate Growth and FDI: Are Multinationals Stimulating Local Industrial Development? (January 2002). CEPR Discussion Paper No. 3128. Available at SSRN: https://ssrn.com/abstract=298821

Georgios Fotopoulos (Contact Author)

University of Patras - Department of Economics ( email )

Patras GR-265 04
Greece

Eleni (Helen) Louri

Athens University of Economics and Business - Department of Economics ( email )

76 Patission Street
GR-10434 Athens
Greece
+30 1 8203122 (Phone)
+30 1 8238249 (Fax)

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