Reconsidering the concentration of US MNE activity: Is it global, regional or national?

Hejazi, Walid

doi:10.1007/s11575-007-0002-8

Cited by 48 publications

(43 citation statements)

References 31 publications

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“…of the 83 per cent intra-regional sales for the home region oriented exporters, 62 per cent never cross the UK border. These observations indicate that the regional concentration is mainly driven by the national dimension of the firm's sales (Hejazi, 2007). The significant share of home sales (over 60%) re-emphasise the critical importance of the national dimension for any international corporate strategy, as it reflects the nature of the firm's FSAs and the associated degree of liability of foreignness (Rugman and Verbeke, 2007).…”

Section: Regional Nature Of the British Exportersmentioning

confidence: 84%

“…In a number of subsequent articles and books Rugman and his co-authors have presented considerable empirical evidence on the predominantly home region orientation of the world's largest multinational enterprises (MNEs) (e.g. Rugman and Verbeke, 2004, 2007Rugman, 2005). A formal model in the form of regionalization theory has been put forward intended to explain why firms' international activities are significantly constrained to the home region.…”

Section: Introductionmentioning

confidence: 99%

“…Hejazi (2007), for example, examines the global, regional and national concentration of US MNE activity and reports inability to obtain such data on MNE activity for any of the OECD countries. We bridged this gap by using primary data on 356 UK exporters collected by an electronic survey technique.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The geography of British exports: Country-level versus firm-level evidence

Beleska‐Spasova

Glaister

2009

European Management Journal

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Section: Regional Nature Of the British Exportersmentioning

confidence: 84%

Section: Introductionmentioning

confidence: 99%

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The geography of British exports: Country-level versus firm-level evidence

Beleska‐Spasova

Glaister

2009

European Management Journal

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“…While FDI flows and stocks are perfectly appropriate measures of a country's inflows and outflows of financial capital, and of their cumulative size, they are not simply noisy but are biased measures of the magnitude of the value-adding activities performed by MNEs abroad. A number of scholars, including Hejazi (2007), Rangan (1998), and Slangen and Beugelsdijk (2010), have shown that it is possible to use other measures of the aggregate value-adding activity performed by MNE affiliates in host countries to ascertain its magnitude, determinants, or impact on host countries. We believe the time has come for others in the IB field to follow their lead.…”

Section: Models 3a and 3b Inmentioning

confidence: 99%

Why and how FDI stocks are a biased measure of MNE affiliate activity

et al. 2010

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General rightsCopyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights.-Users may download and print one copy of any publication from the public portal for the purpose of private study or research -You may not further distribute the material or use it for any profit-making activity or commercial gain -You may freely distribute the URL identifying the publication in the public portal Take down policyIf you believe that this document breaches copyright, please contact us providing details, and we will remove access to the work immediately and investigate your claim. AbstractMany international business (IB) studies have used foreign direct investment (FDI) stocks to measure the aggregate value-adding activity of multinational enterprises (MNE) affiliates in host countries. We argue that FDI stocks are a biased measure of that activity, because the degree to which they overestimate or underestimate affiliate activity varies systematically with host-country characteristics. First, most FDI into countries that serve as tax havens generate no actual productive activity; thus FDI stocks in such countries overestimate affiliate activity. Second, FDI stocks do not include locally raised external funds, funds widely used in countries with well-developed financial markets or volatile exchange rates, resulting in an underestimation of affiliate activity in such countries. Finally, the extent to which FDI translates into affiliate activity increases with affiliate labor productivity, so in countries where labor is more productive, FDI stocks also result in an underestimation of affiliate activity. We test these hypotheses by first regressing affiliate value-added and affiliate sales on FDI stocks to calculate a country-specific mismatch, and then by regressing this mismatch on a host country's tax haven status, level of financial market development, exchange rate volatility, and affiliate labor productivity. All hypotheses are supported, implying that FDI stocks are a biased measure of MNE affiliate activity, and hence that the results of FDI-data-based studies of such activity need to be reconsidered.

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“…Anderson, 2011 ) and more recently foreign direct investments (e.g. Hejazi, 2007 ), including those in banking ( Claessens and Van Horen, 2014b ).…”

Section: Discussionmentioning

confidence: 99%

What drives cross-border M&As in commercial banking?

Gulamhussen

Hennart

Pinheiro

2016

Journal of Banking & Finance

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a b s t r a c tUsing a gravity model, we analyze the determinants of the probability that commercial banks in 89 acquiring countries and 118 target countries will undertake M&As over a 30-year period and of the value of these M&As. We find that the value of cross-border M&As increases with the size of the acquiring country, and that both the probability and value of M&As vary positively with the depth of the financial market in acquirer countries and the presence of corporate and non-corporate customers from acquiring countries in target countries, and negatively with the geographic, psychic, and time zone distances between acquirer and target countries. Our study highlights the role of non-corporate customers and of psychic distance in the cross-border expansion of commercial banks through M&As.

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Reconsidering the concentration of US MNE activity: Is it global, regional or national?

Cited by 48 publications

References 31 publications

The geography of British exports: Country-level versus firm-level evidence

The geography of British exports: Country-level versus firm-level evidence

Why and how FDI stocks are a biased measure of MNE affiliate activity

What drives cross-border M&As in commercial banking?

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