Foreign Direct Investment, Source Country Heterogeneity and Management Practices

34 Pages Posted: 6 Mar 2019

See all articles by Fredrik Heyman

Fredrik Heyman

Research Institute of Industrial Economics (IFN)

Pehr‐Johan Norbäck

Research Institute of Industrial Economics (IFN)

Rickard Hammarberg

Research Institute of Industrial Economics (IFN)

Multiple version iconThere are 2 versions of this paper

Date Written: April 2019

Abstract

This paper examines whether and, if so, why source country heterogeneity exists in foreign direct investment. Using detailed Swedish matched employer‐employee data for the period from 1996 to 2009, we find statistical evidence that affiliate performance differs systematically across source countries. We then show that differences in foreign multinational enterprises’ global management practices (estimated from the new firm‐level data from the World Management Survey) are an important determinant of productivity among foreign affiliates.

Suggested Citation

Heyman, Fredrik and Norbäck, Pehr‐Johan and Hammarberg, Rickard, Foreign Direct Investment, Source Country Heterogeneity and Management Practices (April 2019). Economica, Vol. 86, Issue 342, pp. 362-395, 2019. Available at SSRN: https://ssrn.com/abstract=3345655 or http://dx.doi.org/10.1111/ecca.12294

Fredrik Heyman (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

HOME PAGE: http://www.ifn.se

Pehr‐Johan Norbäck

Research Institute of Industrial Economics (IFN)

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Rickard Hammarberg

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

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