Optimal geographic diversification and firm performance: evidence from the U.K.

Nigel Driffield, Jun Du, Sourafel Girma

Research output: Contribution to journalArticle

Abstract

This paper examines the relationship between multinationality and firm performance. The analysis is based on a sample of over 400 UK multinationals, and encompasses both service sector and manufacturing sector multinationals. This paper confirms the non-linear relationship between performance and multinationality that is reported elsewhere in the literature, but offers further analysis of this relationship. Specifically, by correcting for endogeneity in the investment decision, and for shocks in productivity across countries, the paper demonstrates that the returns to multinationality are greater than those that have been reported elsewhere, and persist to higher degrees of international diversification.
Original languageEnglish
Pages (from-to)145-254
Number of pages110
JournalJournal of Productivity Analysis
Volume30
Issue number2
Early online date8 Aug 2008
DOIs
Publication statusPublished - Oct 2008

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diversification
citizenship
firm
performance
evidence
manufacturing sector
tertiary sector
productivity
Multinationality
Geographic diversification
Firm performance
Multinationals
literature
Investment decision
Manufacturing sector
Service sector
Endogeneity
International diversification
Productivity
Nonlinear relationships

Bibliographical note

The original publication is available at springerlink.com

Keywords

  • multinational
  • performance
  • productivity

Cite this

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Optimal geographic diversification and firm performance : evidence from the U.K. / Driffield, Nigel; Du, Jun; Girma, Sourafel.

In: Journal of Productivity Analysis, Vol. 30, No. 2, 10.2008, p. 145-254.

Research output: Contribution to journalArticle

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