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This paper empirically investigates two areas of changes in firm behavior and performance at home before and after investing abroad. The first is the type of Foreign Direct Investment (FDI): horizontal FDI or vertical FDI. The second is the firm's domestic activities of interest: production activity and non-production activity. From a theoretical standpoint, the impact of outward FDIs differs not only by type, but according to the firm's activities. By exploiting two types of firm-level data that enable the authors to distinguish between production and non-production activities, the paper provides a detailed picture of the intra-firm changes in behavior and performance that occur as a result of globalizing production.
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