RT Journal Article
T1 Scope, scale, and locational preferences: an analysis of emerging multinationals
A1 Fariñas García, José Carlos
A1 Moreno Martín, María Lourdes
A1 Martín-Marcos, Ana
AB This paper aims to examine the case of emerging multinationals, using a large sample of Spanish parent-subsidiary links obtained from ORBIS Bureau van Dijk. Three characteristics of multinational frms are specifcally considered: their scope, scale, and location decisions. Our results confrm that more productive frms engage in greater multinational activity in terms of their scope (the number of foreign markets in which they invest) and scale (the volume of local sales by subsidiaries in foreign markets). The structure of multinational firms’ activity is also analyzed from the perspective of host country characteristics. Distance and the relative labor costs of the host country are negatively related to the scope of foreign direct investment decisions, whereas the presence of a common language, host country size, and institutional quality positively infuence decisions to invest abroad. In the manufacturing sector, host country tarifs positively correlate with the scope of multinational firms’ operations, whereas regulatory trade barriers in host countries negatively infuence investment decisions in the services sector. These results are robust to the control of endogeneity between parent firms’ productivity and both the scope and scale of subsidiaries abroad.
PB Springer Nature
YR 2025
FD 2025-02
LK https://hdl.handle.net/20.500.14352/124827
UL https://hdl.handle.net/20.500.14352/124827
LA eng
NO Fariñas, J.C., Martín-Marcos, A. & Moreno, L. Scope, scale, and locational preferences: an analysis of emerging multinationals. Empirica 52, 559–589 (2025). https://doi-org.bucm.idm.oclc.org/10.1007/s10663-025-09643-5
DS Docta Complutense
RD 20 ene 2026