Firm growth in multinational corporate groups

Oberhofer, Harald; Pfaffermayr, Michael

doi:10.1007/s00181-012-0579-z

Cited by 17 publications

(8 citation statements)

References 37 publications

(36 reference statements)

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“…While peer-effects econometrics has been applied many times to analysis of neighborhood effects, substance use among teenagers, and peer group effects among university room-mates (see Soetevent (2006) for a survey), it has recently been applied in the context of firm growth. Oberhofer and Pfaffermayr (2010) investigate the growth of multinational groups, and observe positive externalities within vertically organized multinational networks, although horizontally organized networks display negative growth spillovers.…”

Section: Peer-effects Econometricsmentioning

confidence: 99%

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Inter-firm rivalry and firm growth: is there any evidence of direct competition between firms?

Coad¹,

Teruel²

2012

Industrial and Corporate Change

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Inter-firm competition has received much attention in the theoretical literature, but recent empirical work suggests that the growth rates of rival firms are uncorrelated, and that firm growth can be taken as an essentially independent process. We begin by investigating the correlations of the growth rates of competing firms (i.e. the largest and second-largest firms in the same industry) and observe that, surprisingly, the growth of these firms can be taken as independent. Nevertheless, peer-effect regressions, that take into account the simultaneous interdependence of growth rates of rival firms, are able to identify significant negative effects of rivals' growth on a firm's growth. JEL codes: L25

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Section: Peer-effects Econometricsmentioning

confidence: 99%

“…We follow the methodology used in Oberhofer and Pfaffermayr (2010) Consider the following regression equation:…”

Section: Peer-effects Econometricsmentioning

confidence: 99%

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Inter-firm rivalry and firm growth: is there any evidence of direct competition between firms?

Coad¹,

Teruel²

2012

Industrial and Corporate Change

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“…This approach relates our paper to a recent literature on the organization of production along the value chain (e.g., Antràs and Chor 2013;Costinot et al 2013), because using weights on input-output dependence allows us to draw conclusions about the relative position (upstream or downstream) of entities (and countries) in the global value chain. Moreover, the approach is related to the literature unveiling vertical international linkages in the productivity (see Bernstein and Mohnen 1997;Keller 2002;Morrison Paul and Siegel 1999;Smarzynska Javorcik 2004), growth and volatility (Burstein et al 2008;Kleinert et al 2012;Oberhofer and Pfaffermayr 2013), and, hence, the profitability across units (firms, sectors, and even countries). Comparing input-output-related interdependencies of affiliates' investments to geographic-distance-related interdependencies also permits drawing conclusions about the relative importance of different channels of interdependence.…”

Section: Introductionmentioning

confidence: 99%

Measuring the Interdependence of Multinational Firms' Foreign Investments

et al. 2017

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Earlier work found evidence for geographic linkages of aggregate foreign direct investment across countries and country‐pairs. From a theoretical point of view, such linkages at the macroeconomic level may root in between‐firm as well as within‐firm linkages and originate from information spillovers across or within firms in exploring unknown markets, and vertical linkages between production plants across different locations within the firm. We use data on the universe of German multinational enterprises (MNEs) to empirically explore how marginal investments at one foreign affiliate depend on investments at other affiliates within the same MNE. The empirical approach employs two channels or modes of cross‐affiliate interdependence: mere geography (capturing horizontal linkages through correlated learning and horizontal competition within the firm) and input–output relationships within or across industries (which capture vertical linkages). Adding to earlier findings at the aggregate level, we find evidence of a significant interdependence of investments within the firm. In the firm‐level data at hand, vertical linkages appear to be more important than horizontal ones. Investments at one location tend to stimulate investments at other locations of the same MNE, particularly if input linkages are strong. The opposite seems to be true for output linkages. Beyond vertical linkages, mere geographic proximity matters only to a minor extent. This suggests that evidence of linkages through geographic closeness at aggregate data levels accrue mainly to reasons of vertical linkages within networks of affiliates. (JEL C31, D22, F21, F23, F68, G31, H32)

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“…They showed that spatial spillovers matter between plants located in the same city. A recent study by Oberhofer and Pfaffermayr (2013) investigated firm growth from the network perspective. They used the IV-estimation procedure for peer group effects and European firm level data to explicitly incorporate independence within multinational corporate groups.…”

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confidence: 99%

A note on MAR and Jacobs externalities in the Tunisian manufacturing industries

Amara

Lahga²

2014

Lett Spat Resour Sci

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The aim of this paper is to identify the effect of neighborhood peer groups on firm's performance, approximated by the value added per worker. More specifically, we distinguish between the effects of own firm's characteristics (direct effects) and mean characteristics of their neighbors (endogenous and contextual effects) on its output level. Using the Conditional Maximum Likelihood estimator proposed by Lee (J Econom, 140(2):333-374, 2007) on Tunisian data, we show that the average value added per worker of peers affect significantly individual firm's performance. In addition, contextual peer effects are also significant. The multiplier effect on labor productivity varies between 1.6 and 2.03 according to the reference group definition.

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Firm growth in multinational corporate groups

Cited by 17 publications

References 37 publications

Inter-firm rivalry and firm growth: is there any evidence of direct competition between firms?

Inter-firm rivalry and firm growth: is there any evidence of direct competition between firms?

Measuring the Interdependence of Multinational Firms' Foreign Investments

A note on MAR and Jacobs externalities in the Tunisian manufacturing industries

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