Sectoral determinants of the location choice of MNCs
Author(s)
Advisor
Böke, Selin SayekDate
2007Publisher
Bilkent University
Language
English
Type
ThesisItem Usage Stats
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Abstract
This thesis examines the determinants of multinational companies (MNCs)’
location choices estimating conditional or nested logit model using a dataset of more
than 17,000 firms invested in 38 developing countries over the period 1980-2004. In
addition, this dataset has an exceptional feature – it allows identifying the sectors that
these firms invest in. The sectoral analysis is undertaken both at 2-digit ISIclassification
and aggregate level where sectors are lumped according to their
tradability or technology intensity. The empirical results suggest that the determinants
of the probability that a MNC invests in a particular country vary across sectors. Thus,
the sectoral composition of FDI is essential for understanding its economic
geography.