The World’s Largest Firms
This chapter presents econometric evidence on the theory developed in Chapter 2. Section 4.2 describes the sample, which is based on a world-wide cross-section of large manufacturing firms, and indicates how the key variables have been measured. Section 4.3 develops and summarises the predictions of the theory, emphasising how the hypotheses can be formulated so as to be testable within the limits imposed by data availability. Section 4.4 reviews the statistical methodology. Section 4.5 presents formal tests of the hypotheses. Section 4.6 discusses possible mis-specifications of the statistical relationships and describes tests which have been made to check the sensitivity of the results to specification error. Section 4.7 summarises the main conclusions of the study.
KeywordsMultinational Enterprise Parent Firm International Joint Venturis Country Dummy Variable Motor Vehicle Industry
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- 1.For a full description of the data see J. H. Dunning and R. D. Pearce Profitability and Performance of the World’s Largest Industrial Companie (London, 1975).Google Scholar
- 3.The basic reference on classical multivariate analysis is M. G. Kendall and A. Stuart, The Advanced Theory of Statistics, 4th ed., vol. 2 (London, 1961).Google Scholar
- 5.J. H. Dunning, P. J. Buckley and R. D. Pearce, The World’s Largest Firms, mimeo (Univ of Press: Reading, 1975).Google Scholar