Working Paper: CEPR ID: DP3128
Authors: Georgios Fotopoulos; Helen Louri
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; quantile regression; spillovers
JEL Codes: F23; L11
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| MNCs (F23) | domestic firm growth (L25) |
| degree of foreign ownership (fown) (F23) | domestic firm growth (L25) |
| level of foreign participation in the industry (fshare) (F23) | domestic firm growth (L25) |
| higher foreign ownership (F23) | faster growth rates for domestic firms (F23) |
| higher proportion of foreign ownership in industries (F23) | greater growth for firms (L25) |
| higher sunk costs (G31) | faster growth rates among firms (L25) |
| younger firms (L26) | faster growth than older firms (L26) |
| age (J14) | growth (O40) |