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Salespeople are increasingly required to navigate an international environment—having international customers or international peers. However, much remains to be learned about how salespeople are utilizing social media in an international context. This multimethod, multistudy design contributes to international sales research by showing how business-to-business (B2B) salespeople use social media whether they are in a multinational or local firm. With a social capital lens, the authors explore the importance of social media with regard to strengthening salespeople's internal and external connections in an international context. In Study 1, 131 B2B salespeople use social media to develop customer relations (i.e., external connections) to engage in positive publicity and social media advocacy, ultimately leading to better sales performance. Specifically, social media advocacy enhances sales performance only for salespeople in multinationals. In Study 2, with 23 qualitative interviews, the authors contextualize the findings of Study 1 by comparing social media use among salespeople in multinational and local firms. The basis of the exploration involves internal and external connections with the three dimensions of social capital: structural, relational, and cognitive. The authors demonstrate that internal connections with peers on social media allows for increased knowledge transfer and other benefits. [ABSTRACT FROM AUTHOR]

In this paper, we examine the persistence of benefits from foreign ownership, which informs the proper FDI policies. We exploit the divestment of foreign affiliates in South Korea from 2007 to 2019 as a quasi‐experiment to estimate such persistence of benefits. Our empirical analysis at firm‐level based on the propensity score reweighted difference‐in‐differences model leads to several conclusions. First, on average, the productivity benefit from foreign ownership does not persist after the divestment. Second, the productivity benefit of foreign ownership is persistent in firms with a higher absorptive capacity, measured by R&D intensity, intangible assets, and skilled workers. Such persistence is strengthened if the former foreign affiliate has a longer duration of ownership before the divestment. It suggests that absorptive capacity and time input are helpful for foreign affiliates to persistently absorb knowledge from their owners. Finally, we find that the productivity benefits of foreign ownership are less persistent at former foreign affiliates relying more on external trade. [ABSTRACT FROM AUTHOR]

We use unique enterprise survey data to explore the export behavior of firms in Tunisia, a small, trade-dependent country with a complex policy environment regarding exporting. Firms may export directly or indirectly through intermediaries, and can also sell to ‘offshore’ firms, which are export manufacturing firms with special legal status. Firm size, a proxy for productivity, is strongly associated with exporting of either type as well as with sales to offshore firms. In contrast to some studies, exporting is not positively associated with firm age (i.e., experience). Domestic-owned firms are more likely to use intermediaries to export while foreign-owned firms as well as those with more educated managers are more likely to export directly. Multinomial logit results reject the hypothesis of progression from indirect exports through direct plus indirect exporting and then to direct-only exporting as firm size increases; instead, the largest exporting firms are more likely to combine direct and indirect exporting, possibly to reduce risk. The findings from this study – the first to examine the heterogeneity of exporting behavior in Tunisia – reveal a complex picture of such behavior and confirm the importance of trade intermediaries for less sophisticated firms (those with lower manager education and internet access), pointing to potential measures to encourage exporting among such enterprises. The findings also suggest that efforts to encourage exporting may also improve firms’ ability to sell to ‘offshore’ firms, enhancing the so far elusive linkages of that sector with the rest of the economy. [ABSTRACT FROM AUTHOR]

Copyright of Contaduría y Administración is the property of Facultad de Contaduria y Administracion-Universidad Nacional Autonoma de Mexico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper empirically investigates whether and how the level of GVC integration of a given market may explain the presence of foreign‐owned firms. Using firm‐level data from 28 European Union countries during the period 2008–2014, we provide evidence that a greater country‐sector‐level GVC participation, via both backward and forward linkages, exerts a positive effect on a firm's likelihood to receive FDI. These findings appear particularly strong for new EU Member States and services industries when looking at the differences across countries and sectors. Interestingly, when exploring the role of country‐sector position along the GVC, we find that FDI gains from backward GVC integration are more prominent if the markets are associated with the final stages of the supply chain, whereas those from forward GVC integration are greater when the markets are associated with the initial stages, in line with the smile curve hypothesis. [ABSTRACT FROM AUTHOR]

In this paper, we focus on the conceptualization of corporate citizenship and examine the effects of its tangible manifestation, in the form of corporate philanthropy, on company performance recognizing the importance of the institutional contexts where companies are embedded. Based on a sample of 752 multinational companies that have joined the UN Global Compact, we explore the derived benefits, using as a moderator the legal environment where companies operate. The results of the random‐effect regression analysis show the existence of a positive relationship between corporate citizenship and corporate market valuation over the study period (2016–2022). Findings on corporate citizenship are consistent with previous studies, and the role of the legal tradition emerges as a salient avenue for future investigation. Companies that highly leverage the philanthropic dimension of corporate citizenship and are primarily embedded in a common‐law tradition benefit more than those operating in a civil‐law system. [ABSTRACT FROM AUTHOR]

The 2017 US tax legislation—widely referred to as the Tax Cut and Jobs Act (TCJA)—fundamentally transformed the US system of international taxation. It ostensibly ended worldwide taxation but introduced, for instance, a new tax on "Global Intangible Low-Taxed Income". This paper surveys the emerging empirical literature on the impact of the TCJA's international provisions. It documents five robust findings in this empirical literature. First, the TCJA led to a general decline in US MNCs' foreign acquisitions. Second, the TCJA increased US MNCs' investment in routine foreign tangible assets. Third, the reform did not lead to any change in profit shifting by US MNCs beyond the magnitude that would be expected based on the TCJA's tax rate reduction. Fourth, The TCJA appears to have reduced the market value of US MNCs relative to domestic US firms. Fifth, the TCJA does not appear to have had any detectable impact on domestic US investment and wages (although there are some contrary results for capital expenditures). The welfare implications of these findings depend crucially on whether US MNCs' are viewed as having engaged in too much or too little foreign activity prior to the TCJA. This depends on the choice of theoretical framework and the relevant normative benchmark, and cannot readily be resolved empirically. [ABSTRACT FROM AUTHOR]

Through the lens of a quantitative general equilibrium model of international trade and multinational production, this paper studies corporate tax competition and cooperation among asymmetric countries. The model theoretically supports the empirical regularities that corporate income taxation influences multinational firms' location and production decisions. Calibrating the model to three asymmetric countries for a hypothetical tax competition, I find that race to the bottom occurs in the Nash equilibrium. Furthermore, counterfactual analysis of the global minimum corporate tax shows welfare reduction compared to the equilibrium of tax competition but welfare improvement compared to the current tax regime. [ABSTRACT FROM AUTHOR]

Background: The trade conflicts between the United States and China have significantly disrupted global trade and economic growth. In today's globalized economy where the production of goods and services spans across multiple nations, these disputes have far‐reaching consequences that extend beyond the involved parties and impact the broader global economy. Objective: We examine the effects of the U.S.‐China trade disputes on multinational investment patterns in China and Southeast Asia. Methods: Using a dynamic compositional approach, we analyze data on firm‐level greenfield foreign direct investment. Results: We observe European firms increasing their investments in China to enhance market penetration, while American firms are withdrawing, redirecting their focus toward Southeast Asia to mitigate dependence on the Chinese market. Conclusion: This shift highlights broader international business strategy trends amid geopolitical and economic changes. The results indicate significant transformations in global supply chains, shedding light on the extensive effects of U.S.–China trade tensions on global economic equilibrium and how these tensions are reshaping international investment and supply chain dynamics. [ABSTRACT FROM AUTHOR]

AbstractMultinational firms establish foreign affiliates to reduce production and transaction costs and open markets. This study was conducted to determine whether foreign affiliates are efficient in production—the efficiency of foreign affiliates established by Korean multinationals through foreign direct investment from 2007 to 2018. DEA efficiency was measured by dividing it into pure, technical, and scale efficiency. An empirical analysis using the panel Tobit and Probit models examined the factors affecting efficiency decisions. It was confirmed that the total number of foreign affiliates’ employees significantly affects their efficiency. In addition, it was analyzed that establishments with traditional FDI motives, such as taking advantage of low wages and promoting exports, harm the efficiency of foreign affiliates. [ABSTRACT FROM AUTHOR]

This article reviews and compares the establishment and trajectories of foreign banking firms (British, French, German, and Spanish) in the early financial markets of various Latin American countries from 1863 to 1914. We describe and compare their organizational models and strategies to expand their businesses. We argue that the model of multinational banking was preceded by diverse banking experiments which need to be better appreciated. [ABSTRACT FROM AUTHOR]

Problem definition: As related party transactions (RPTs) increase in global supply chains, understanding the impact of corporate governance on such transactions becomes crucial for businesses. RPTs often lead to operational diversion due to power disparities between parent and its subsidiaries. In this study, we explore how operational diversion in RPTs within multinational firms is affected by the roles of foreign subsidiaries and corporate governance mechanisms. Methodology/results: Using a unique data set on RPTs of Korean multinational firms from 2006 to 2013, we compare the performance of multinational firms engaging in RPTs with two types of foreign subsidiaries: vertical and horizontal. We conduct our empirical analysis based on the adoption of International Financial Reporting Standards (IFRS) in Korea in 2011, which acts as a policy shock affecting corporate governance and deterring operational diversion. Our results show that the improvement in operational performance of a multinational firm following the IFRS adoption is more significant when the parent firm engages in transactions with vertical subsidiaries compared with horizontal ones. We further show that strong corporate governance mechanisms, such as internal governance, institutional ownership, and large shareholders, play a crucial role in restraining operational diversion in RPTs involving vertical subsidiaries. Managerial implications: The implications of our study extend to shareholders and auditors, highlighting the importance of prioritizing monitoring efforts concerning a parent firm's RPTs with vertical subsidiaries, especially when corporate governance mechanisms are weak. In contrast, RPTs with horizontal subsidiaries are relatively robust against operational diversion, making them a natural deterrent to such malpractices. Funding: This work was supported by the Institute of Management Research at Seoul National University, the Hankuk University of Foreign Studies Research Fund [2023], and the Research Fellowship Fund of the Sangnam Institute of Management, Yonsei University [2020-22-0007]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/msom.2022.0372. [ABSTRACT FROM AUTHOR]

We explore how the type of global market entry affects wage premia, classifying firms into four categories: domestic only, domestic exporters, non-exporting multinationals, and exporting multinational enterprises. Using firm-level panel data for Bosnia and Herzegovina, Croatia, and Slovenia for the years 2007–2017 and a multivariate endogenous treatment model based on the approach of Wooldridge (J Econom 68(1):115–132, 1995), we find that the multinational wage premia are mainly driven by the export status of multinational firms. Specifically, domestic exporters and exporting multinationals pay on average higher wages than non-exporting firms, whereas non-exporting multinationals tend to pay lower wages than domestic-only firms. [ABSTRACT FROM AUTHOR]

Income generated by foreign direct investments (FDI) has grown since the 1990s, and now represents a substantial portion of many countries' current accounts. Some of these flows are routed through Special Purpose Entities in financial centers that multinational firms use to minimize their tax liabilities. We use IMF and OECD data to evaluate the impact of this income on the income share of the top 1% of households in the multinationals' home countries. We distinguish between FDI equity income and FDI interest income arising from intra-firm lending. We also consider separately the effects in advanced economies from those in financial centers. FDI equity income contributes to the income share of the top 1% of households in advanced economies, while FDI interest income has no impact in these economies. Similar results for these countries are recorded when we use the OECD non-SPE data. As a result, total FDI income reinforces the income share of the top 1% of households in these countries. While there is some evidence of a similar impact by FDI equity income on the top 1% of households in the financial centers, this result is not apparent when non-SPE income data are used. [ABSTRACT FROM AUTHOR]

This paper studies the impacts of geographic proximity and investment connection on the outward foreign direct investment (OFDI) decisions by Chinese multinational firms, including both greenfield investment and cross‐border merger and acquisition. We model firms' OFDI expansion with the lagged spatial structure, and collect outward FDI data of 3479 Chinese multinational firms from 2002 to 2013 whose investment destination covers more than 160 countries. We find that the spatial expansion of firms' existing OFDI play an important role in shaping their future investment decisions. Firstly, firms tends to invest in destinations that are closer to China, and expand further into destinations that are geographically closer to their existing OFDI locations. This is the geographic network effect. Secondly, we also find that firms are more likely to invest in countries with more intense FDI from China, and extend their OFDI networks to destinations with stronger investment connections with their existing subsidiary locations. This is the investment network effect. We show that these two effects are robust to alternative investment and geographic network measures and further controls. [ABSTRACT FROM AUTHOR]

Anecdotal evidence for several developing countries suggests that foreign direct investment and multinational enterprises (MNEs) may be an important conduit of cultural exchange. Recent work in economics has explored the role that MNEs play in transferring gender equality around the globe, but with mixed results. In this paper, we consider the implications of increased foreign direct investment in Brazil on the transmission of high‐quality gender policy and practice. In particular, we investigate whether workers with experience at multinational firms, now employed in domestic firms with no foreign influence, help to change gender‐specific outcomes at their Brazilian companies. We next ask whether it matters from where the foreign direct investment originates—that is, do workers with experience in MNEs with headquarters in relatively gender‐equal countries transfer best practices toward women better than do workers with experience in MNEs from relatively more gender‐unequal countries? Increasing the share of workers with MNE experience modestly improves the gender earnings gap in some specifications. Additionally, workers in management positions offer the strongest positive contributions to closing gender gaps. However, despite the many theoretical reasons and suggestive empirical evidence from previous literature to expect differential implications across FDI‐source countries, our data fail to support this notion. [ABSTRACT FROM AUTHOR]

Copyright of Journal of International Business Studies is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper analyzes how pollution control in the recipient developing country affects the flow of multinational capital owned by multinational firms in the source developed country. We find that when pollution control in a developing country becomes stricter, then the amount of multinational capital flowing into the developing country will certainly or conditionally decrease. Through further welfare analysis, we hope to provide some policy suggestions that will allow the government to guarantee the welfare of the labor force while it implements stricter pollution control. [ABSTRACT FROM AUTHOR]

Background: In today’s volatile and highly competitive business environment, the importance of knowledge capital and innovation management for multinational manufacturing firms has been widely recognised by both academia and industry. Aim: This article aims to explore the impact of transboundary investment and assimilative capacity on the association between knowledge capital and innovation management in this specific context. Setting: A total of 217 managers and employees were selected from 19 multinational manufacturing firms listed on the Ghana stock exchange to participate in the survey. Method: Using a theoretical-based association existing research model, data were collected through an online electronic questionnaire survey. The collected data were then analysed using path analysis, utilising SPSS 22.0 and AMOS 24.0 software to test the formulated hypotheses. Results: The study found that an organisation-wide unified system, technological, organisational resource and knowledge capital-enabling structures strongly influence multinational manufacturing firms. Besides, knowledge capital and innovation management have a positive mediating role and a significant impact on multinational manufacturing firms. However, there was no significant impact between knowledge of empirical capital and innovation management. Conclusion: The findings of this study highlight the importance of knowledge capital in enhancing innovation management and emphasise the role of transboundary investment and assimilative capacity in mediating this relationship. Contribution: This research contributes to the theoretical understanding of how knowledge capital and innovation management are interconnected, as well as the relationship between transboundary investment and assimilative capacity, and their respective roles in mediating this relationship.

In an increasingly complex international environment, the expansion of global capital flows, particularly foreign direct investment (FDI),has become an important catalyst in developing countries, in part due to a large and significant integration into global value chains (GVCs). Theoretically, the presence of multinationals in the host country is supposed to increase productivity, employment, wages, know-how, and technology of domestic firms. However, so far, the results in the empirical literature have been unclear, mainly due to the limited reliable and detailed enterprise-level data. As a result, in this paper we attempt to examine whether there is a significant difference between multinationals (MNE) and domestic firms in Morocco on a set of economic performance outcomes. To do so, we used firm-level data obtained from the World Bank Enterprise Survey for the year 2019, using a quasi experimental technique called propensity score matching (PSM). The results reveal that the difference between foreign-owned and domestic matched firms leads to a decrease in labor productivity, higher employment and non significant impact on wages. In addition, our findings indicate that the use of foreign certification shows a positive impact on the demand of skilled labor than for foreign ownership indicator.

This study contributes to the debate on the impact of international shocks on the integration of national systems of cities into global economic networks. We examine how the crisis in Ukraine and the following economic sanctions of 2014 imposed on Russia affected the positions of Russian cities in global economic networks. To do so, we used worldwide data on the corporate networks of the largest multinational firms and their subsidiaries from 2010 to 2019 to create intercity linkages at both the global and national levels to show how Russian cities' positions evolved during the period. The study shows that although the Russian cities' position in the global network shrank (with a general decrease in Russian cities' linkages), their internationalization increased despite the economic sanctions. The decrease in connectedness mostly concerned the intranational firm linkages between Russian cities, which could explain the increasing interregional inequalities in Russia observed by numerous scholars. In addition, contrary to the main arguments of the global cities approach, among the cities that were most resistant to crises were not only the largest and most diversified cities, as we would expect during such times of uncertainty, but also some highly specialized small towns. [ABSTRACT FROM AUTHOR]

This research aims to analyze the triple moderating effect of the board of directors in the country culture of a firm and its influence on the relationship between organizational innovation and organizational learning in corporate sustainability. A survey of 400 exporting companies of different commercial products from Colombia, Peru, Ecuador, and Bolivia was used to carry out this research. We used the structural equations model to explore the analysis of the causal and moderation relationships between the variables under study. As a result, it was found that the influence of the board of directors of a firm is essential for innovation processes because they drive their results to corporate sustainability. This last approach is due to the strategic approach adopted by large companies. In the case of SMEs, it was not possible to demonstrate that the board of directors has such a degree of influence. In the case of the moderating effect of the board of directors on the country's culture, it was possible to observe that the board of directors becomes a factor in the firm's performance despite its geographical location, which determines the influence of culture on its operation in corporations such as SMEs. [ABSTRACT FROM AUTHOR]

This paper studies the determinants of inward foreign direct investment (FDI) in Russia using a modified knowledge-capital model. In particular, we investigate the impact of factor endowments, trade agreements, sanctions, and round-trip FDI on inward investments by multinational firms over 2009–2019. Our results demonstrate how differences in physical capital levels can identify aggregate vertical FDI activity in the presence of round-trip destinations such as Cyprus, Luxembourg, and the Netherlands. We discover that bilateral economic sanctions introduced in 2014 have had a short-lived negative effect on both outward and inward FDI activity across genuine investors. Finally, we show that expansion of economic links through the Eurasian Economic Union (EUEA) has facilitated FDI coming into Russia. [ABSTRACT FROM AUTHOR]

MNCs are regarded as one of the essential actors within the private sector that have a greater capability and outreach to address these wicked global challenges identified by the UN in 2015. Surprisingly, despite their important role in achieving SDGs, there is a lack of knowledge on the nature and extent of MNCs' engagement in sustainable development programs (van der Waal and Thijssens, 2020). This study aims to address this issue by examining the characteristics (organizational size, and location) that influence firms' engagement in SDGs initiatives that target to increase positive externalities. The results suggest that size and location exert a positive impact on the firm's involvement in activities that increase positive externalities. These results have important theoretical and policy implications. [ABSTRACT FROM AUTHOR]

This study explores the finance-specific factors that help domestic companies operating in Thailand receive foreign direct investment (FDI) related to mergers and acquisitions (M&A). The three main objectives of this paper are to: analyse whether the firms receiving FDI differ from those that do not; identify significant finance-specific determinants that make Thai companies more likely to receive foreign investment; and explore the heterogeneity (different responses to investment decisions) at the firm-level, and the impact of financial constraints. This research makes use of the operational and financial data of both listed and unlisted Thai companies over the 2012-20 period and finds that larger as well as younger firms draw more foreign attention and have a higher probability of receiving M&A type of FDI. Moreover, companies with substantial intangible assets attract more investments from abroad. These findings have practical implications for business policies related to the accumulation of intangible assets. Specifically, developing flexible formal/informal linkages with potential M&A partners is key to promoting M&A-type FDI. [ABSTRACT FROM AUTHOR]

MNCs are regarded as one of the essential actors within the private sector that have a greater capability and outreach to address these wicked global challenges identified by the UN in 2015. Surprisingly, despite their important role in achieving SDGs, there is a lack of knowledge on the nature and extent of MNCs’ engagement in sustainable development programs (van der Waal and Thijssens, 2020). This study aims to address this issue by examining the characteristics (organizational size, and location) that influence firms’ engagement in SDGs initiatives that target to increase positive externalities. The results suggest that size and location exert a positive impact on the firm’s involvement in activities that increase positive externalities. These results have important theoretical and policy implications.

Media inclinations, whether favorable or biased, play a pivotal role in shaping public opinion. Sometimes, media coverage may unintentionally foster skepticism towards foreign firms, which could create challenges for those companies when they enter new markets. Based on a panel dataset from 2005 to 2020, this is one of the first studies to investigate empirically the impact of media opinion on outward foreign direct investment (OFDI) behaviors at the firm level. The media inclination index was constructed according to the varying inclinations of media from different countries in their reporting on each event. We examined the impact of media inclination on the investment value, frequency, and number of industries. This study has revealed the following insights: (i) Positive media coverage can stimulate the investment behavior of Chinese firms. (ii) The heterogeneity analysis indicates that the promotional effect of media reporting inclination on OFDI is more significant for state‐owned firms from the investor's perspective and especially pronounced for firms in developing countries from the investee's perspective. (iii) Diplomatic visits and scientific research cooperation can amplify the positive impact of media opinions on the OFDI behaviors of Chinese firms. [ABSTRACT FROM AUTHOR]

Studies on digitalization and business power tend to focus on digital platform firms. In contrast, we argue that data, digital technologies and digital infrastructures create novel digital power resources (DPR) for firms throughout sectors. DPR can be structural, that is, rooted in data and digital technologies, and infrastructural, that is, rooted in digital infrastructure. We propose indicators and apply them to a sample of 120 large firms from the USA, UK, France and Germany, active in five sectors. We find that firms from all sectors control DPR but the sectoral distribution varies depending on the national political–economic context. Lastly, we demonstrate the analytical value added of our concept by explaining variation in business preferences and strategies toward data sovereignty and data-sharing regulation in the German automotive sector. Our DPR concept improves our understanding of why and how business seeks to influence (digital) policies and politics in digital(ized) capitalism in general. [ABSTRACT FROM AUTHOR]

Existing studies have scrutinized the rise of states as global owners and investors, yet we still lack a good understanding of what state investment does in a globalized economy, especially in host states. Comparative capitalisms research has analyzed foreign state investment as a potential source of patient capital for coordinated and mixed-market economies. However, this patient capital framework cannot explain the recent surge of protectionist sentiments, even among the "good hosts" of state-led investment. Therefore, we go beyond the patient capital argument and develop a novel framework centered on the globalized nature of foreign state investment. We create and empirically illustrate a novel typology based on different modes of cross-border state investment—from financial to strategic—and different categories of host states. Our results provide a new pathway to study the rise and effects of cross-border state investment in the 21st century. [ABSTRACT FROM AUTHOR]

Cities are widely considered as the lifeblood of a nations' economy housing the bulk of industries, commercial and trade activities, and employment opportunities. Within this economic context, multinational corporations play an important role in this economic development of cities in particular, and subsequently the countries and regions they belong to, in general. As multinational companies are spread throughout the world by virtue of ownership–subsidiary relationship, these ties create complex inter-dependent networks of cities that shape and define socio-economic status, as well as macro-regional influences impacting the world economy. In this paper, we study these networks of cities formed as a result of ties between multinational firms. We analyze these networks using intra-regional, inter-regional, and hybrid ties (conglomerate integration) as spatial motifs defined by geographic delineation of world's economic regions. We attempt to understand how global cities position themselves in spatial and economic geographies and how their ties promote regional integration along with global expansion for sustainable growth and economic development. We study these networks over four time periods from 2010 to 2019 and discover interesting trends and patterns. The most significant result is the domination of inter-regional motifs representing cross-regional ties among cities rather than national and regional integration. [ABSTRACT FROM AUTHOR]

International standards in the protection of intellectual property rights (IPRs) are increasingly guided by bilateral and regional preferential trade agreements (PTAs). We estimate the effect of these IP‐related PTAs on US offshoring in developing countries. We utilize a difference‐in‐difference empirical methodology that addresses several sources of endogeneity and exploits industry variation in the importance of IPRs. IP‐related PTAs are associated with a substantial increase in US offshoring in IP‐intensive industries relative to non‐IP‐intensive industries. This increase is concentrated within the boundaries of the multinational firm. PTA‐induced IPRs reform impacts both the intensity and composition of multinational activity in developing countries. [ABSTRACT FROM AUTHOR]

One perspective to view the economic development of cities is through the presence of multinational firms; how subsidiaries of various organizations are set up throughout the globe and how cities are connected to each other through these networks of multinational firms. Analysis of these networks can reveal interesting economical and spatial trends, as well as help us understand the importance of cities in national and regional economic development. This paper aims to study networks of cities formed due to the linkages of multinational firms over a decade (from 2010 to 2019). More specifically we are interested in analyzing the growth and stability of various cities in terms of the connections they form with other cities over time. Our results can be summarized into two key findings: First, we ascertain the central position of several cities due to their economically stable connections; Second, we successfully identify cities that have evolved over the past decade as the presence of multinational firms has increased in these cities. [ABSTRACT FROM AUTHOR]

Using detailed administrative data that link French firms and workers over the years 2002 to 2007, the authors document declines in worker-level wages ahead of the time their employer is acquired by a foreign firm that are more than offset by gains in wages that emerge after cross-border acquisition. Specifically, relative wages fall by an estimated 7.5% in the years just before foreign acquisition, and they rise by approximately 12.5% in the years afterward. Changes in workers' earnings are evident in both wages and in-kind payments given to workers. Moreover, the authors provide theoretical foundations for the conditional mean independence assumption that underlies commonly applied empirical techniques. [ABSTRACT FROM AUTHOR]

Google Scholar Google Preview OpenURL Placeholder Text WorldCat COPAC 22 Busemeyer M. R. (2009) ' Asset Specificity, Institutional Complementarities and the Variety of Skill Regimes in Coordinated Market Economies ', Socio-Economic Review, 7, 375 - 406. Google Scholar Crossref Search ADS Google Preview WorldCat COPAC 19 Özel I. (2014) State-Business Alliances and Economic Development: Turkey, Mexico and North Africa, New York, NJ, Routledge. Keywords: capitalism; varieties of; human resources; manufacturing; multinational firms; production networks; training; B52 Current Heterodox Approaches: Institutional; D24 Production and Organizations: Production Cost Capital Capital; Total Factor; and Multifactor Productivity Capacity; J24 Demand and supply of labour: Human Capital Skills Occupational Choice Labor Productivity EN capitalism varieties of human resources manufacturing multinational firms production networks training B52 Current Heterodox Approaches: Institutional D24 Production and Organizations: Production Cost Capital Capital Total Factor and Multifactor Productivity Capacity J24 Demand and supply of labour: Human Capital Skills Occupational Choice Labor Productivity 1835 1847 13 07/28/23 20230701 NES 230701 Rethinking skill formation systems: a view from the South Correspondence: fapaydin@ibei.org A leading scholar on the political economy of skill formation, Kathleen Thelen once noted that focusing on vocational training may not be the "most scintillating" topic for some social scientists ([11], p. xi). Google Scholar Crossref Search ADS Google Preview WorldCat COPAC 26 Sancak M. (2020) ' Partisan Politics of Skills in Middle-Income Countries: Insiders, Outsiders and the Vocational Education System of Turkey ', Competition & Change, 24, 291 - 314. [Extracted from the article]

Multinational firms indicate that the threat of trade secret misappropriation by current and former employees remains a substantial impediment to conducting business in emerging markets. In this paper, I examine the economic implications of strengthening international standards in trade secret protection. I develop a general equilibrium model featuring heterogeneous firms that differ in the degree to which they must expose employees to trade secrets. To prevent employee misappropriation, firms offer incentive compatible wage premiums based on their individual exposure and the common level of legal protection. Entry selection into the international market generates an endogenous distribution of firm specific wages and positive unemployment in equilibrium. I find that stronger protection stimulates multinational investment and increases aggregate productivity. However, distributional effects leave many workers worse-off. [ABSTRACT FROM AUTHOR]

International capital mobility intensifies tax competition between jurisdictions. However, many firms only operate domestically and are internationally immobile. This paper aims to analyze the effect of tax competition on the profitability of local (immobile) firms, especially when tax and non-tax instruments, including infrastructure provision, are involved. We show that tax competition decreases investment and profit of local firms when internationally mobile firms do not benefit sufficiently from local infrastructure. Tax harmonization does not eliminate this result and is not always favorable to local firms. Under tax discrimination, increased mobility of capital is beneficial to local firms. However, this discrimination is detrimental to local firms. [ABSTRACT FROM AUTHOR]

Before the Finance Act 2019, multinationals exploited the absence of thin capitalization rule in Nigeria, resulting in the government's loss of tax revenue. Thereby necessitating the examination of the effects of thin capitalization on the financial performance of multinational firms in Nigeria. Secondary data was obtained from the annual reports of eight selected multinationals from 2014 to 2021. Thin capitalization was a proxy with financial leverage ratio, fixed-charge coverage ratio and debt ratio; financial performance was a proxy with return on asset, while the firm's size was used as a control variable. Data were analyzed using descriptive statistics, cross-sectional dependence tests, serial correlation, normality tests and regression analyses. The findings revealed that financial leverage and debt ratio do not significantly affect ROA, while fixed-charge coverage ratio had an effect on ROA. The study, therefore, concluded that thin capitalization does not affect multinationals in Nigeria. Hence, Federal inland revenue was recommended to ensure that all multinationals comply with the Finance Act 2019 on the restriction of interest deductible from profit. [ABSTRACT FROM AUTHOR]

This article analyses the role of foreign direct investment (FDI) in neoclassical theory of trade with a focus on the relocation of production into low wage countries. The conceptual analysis shows that FDI not only constitutes a weak spot in comparative advantage theory, but also that the latter is incompatible with efficiency-seeking FDI—with significant implications for policy. In Ricardian and Heckscher-Ohlin models of trade, FDI is ruled out via the assumption of factor immobility. In models in which factor immobility is relaxed, the closest FDI comes to is a generic reference to capital imports and exports, which affect factor endowments and, therefore, comparative advantage. Due to the assumption that input factors are determined by wage-rental ratios, this leads to the condition that firms operating in advanced economies must produce more labor-intensively, if investing in facilities in low-wage countries. Efficiency and market-seeking FDI, which combines productive, capital-intensive modes of production with cheap labor to exploit unit labor cost differentials, is a theoretical and mathematical impossibility in this framework. This conceptual weakness questions the validity of conventional approaches to development policy, which largely rely on market liberalization and free capital mobility. [ABSTRACT FROM AUTHOR]

This study uses a firm-level dataset to examine the impacts of taxation on multinationals' decisions to set up new foreign subsidiaries in developing ASEAN countries. It finds that while taxes play a critical role in multinational enterprises' location choice decision, there is an important heterogeneity in the tax responsiveness. First, the tax sensitivity for high-tech firms is significantly lower than that for low-tech firms. Second, having a prior presence in the respective host country is associated with substantially lower tax responsiveness. Finally, in accordance with international-tax-avoidance considerations, the tax responsiveness is significantly diminished for affiliates with a connection to tax-haven countries. [ABSTRACT FROM AUTHOR]

This paper presents empirical evidence on the proposed global minimum tax (GMT) of the OECD's Pillar 2. First, it addresses how many, and which, countries or country groups can be seen as constituting a 'critical mass' for its successful implementation; given such a critical mass, remaining jurisdictions worldwide will have an incentive to implement the GMT as well. Second, it assesses the generosity of the substance‐based income exclusion (SBIE), which is informative for the revenue collected under the GMT. [ABSTRACT FROM AUTHOR]

Existing studies of the political determinants of top incomes and inequality tend to focus on developments within individual countries, neglecting the role of interdependencies that transcend national borders. This article argues that the sharp rises in top incomes observed in recent years are in part a product of specific features originating in the US political economy, which were subsequently exported to other economies through the global expansion of US-based financial investors. To test the argument, we collect fine-grained micro-level data on executive pay and firm ownership structures for a comprehensive sample of publicly listed firms in the United Kingdom (UK). Our analyses uncover robust evidence that the Americanization of UK firm ownership leads to the financialization of remuneration practices and sizeable pay increases for high-level managers at those firms. Scrutinizing the causal mechanisms underlying this effect, we find them to be more consistent with changes in bargaining power inside firms rather than coercion from outside or exogenous shifts in labor markets for executives. The findings show the disruptive potential of Wall Street investments abroad to empower local managerial elites to capture greater rents and, more generally, demonstrate the need to take the transnational seriously in order to understand patterns of inequality in the global political economy. [ABSTRACT FROM AUTHOR]