Global Fixed Capital Investment by Multinational Firms

We develop and test a model of the simultaneous determination of global gross fixed capital investments by multinational firms. We integrate a model of multi-product firms choosing optimal manufacturing locations with a model of dynamic investment optimization. Firms adjust capital stocks in each location in accordance withe the expected marginal profitability of capital. Analysis of 1504 fixed capital investment decisions by Japanese multinational firms confirms the prediction that investment is not only determined by total factor productivity, effective demand, and wage levels in the host country, but also by wage levels in other countries in which the firm operates

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Year of publication:	2013
Authors:	Belderbos, René
Other Persons:	Fukao, Kyoji (contributor) ; Ito, Keiko (contributor) ; Letterie, Wilko H. (contributor)
Publisher:	[2013]: [S.l.] : SSRN
Subject:	Multinationales Unternehmen \| Transnational corporation \| Auslandsinvestition \| Foreign investment \| Betriebliche Standortwahl \| Firm location choice \| Japanisch \| Japanese \| Internationale Unternehmensfinanzierung \| International corporate finance \| Lohnniveau \| Wage level

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Extent:	1 Online-Ressource (46 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments 2012 erstellt
Other identifiers:	10.2139/ssrn.2200829 [DOI]
Classification:	D24 - Production; Capital and Total Factor Productivity; Capacity ; D92 - Intertemporal Firm Choice and Growth, Investment, or Financing ; F23 - Multinational Firms; International Business
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013088559