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Swiss Journal of Economics and Statistics

, Volume 151, Issue 4, pp 261–298 | Cite as

The Characteristics of FDI Activities Located in Different Host Regions — A Study Based on Firm-Level Data

  • Spyros Arvanitis
  • Heinz Hollenstein
  • Tobias Stucki
Open Access
Article
  • 130 Downloads

Summary

Based on a unique firm-level dataset for Swiss MNEs, this paper characterizes FDI activities located in different host regions. The characterization of the FDI activities is based on information on the parent companies, their foreign subsidiaries and the two-way trade flows between parent companies and foreign affiliates Concretely, the study provides econometric evidence based on multivariate probit estimates about the relationship between a firm’s choice of nine alternative host regions and the type of FDI (horizontal production-oriented, vertical production-oriented, distribution-oriented), a firm’s FDI experience and its capabilities for innovation, respectively. The estimation results indicate that there is low correlation between a firm’s capability for innovation and FDI experience, respectively, and the location of their FDI activities. Further, our estimates indicate large heterogeneity with respect to the type of FDI activities.

Keyword

Foreign Direct Investment Global Location Portfolios Intra-Firm Trade 

JEL classification

F2 

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Copyright information

© Swiss Society of Economics and Statistics 2015

Authors and Affiliations

  • Spyros Arvanitis
    • 1
  • Heinz Hollenstein
    • 1
  • Tobias Stucki
    • 1
  1. 1.KOF Swiss Economic InstituteETH ZurichZurichSwitzerland

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