Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 1041: Foreign Direct Investment, Source Country Heterogeneity and Management Practices

Fredrik Heyman (), Pehr-Johan Norbäck () and Rickard Hammarberg ()
Additional contact information
Fredrik Heyman: Research Institute of Industrial Economics (IFN), Postal: P.O. Box 55665, SE-102 15 Stockholm, Sweden
Pehr-Johan Norbäck: Research Institute of Industrial Economics (IFN), Postal: P.O. Box 55665, SE-102 15 Stockholm, Sweden
Rickard Hammarberg: Research Institute of Industrial Economics (IFN), Postal: P.O. Box 55665, SE-102 15 Stockholm, Sweden

Abstract: This paper examines whether and, if so, why source country heterogeneity exists in foreign direct investments. Using detailed data on all Swedish firms for the period from 1996 to 2009, we find statistical evidence that affiliate performance differs systematically across source countries. We show that differences in foreign MNEs’ global management practices (estimated from the new firm-level data from the World Management Survey) explain about a third of the observed source country variation in productivity among foreign affiliates. We also show how different source country characteristics – through their impact on MNEs’ global management practices – affect affiliate productivity in a host country.

Keywords: Multinational firms; FDI; Management practices; Firm performance

JEL-codes: F21; F23; L10; M10

72 pages, First version: September 25, 2014. Revised: February 11, 2016.

Full text files

wp1041.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-01-23 23:34:46.