Publication

This paper looks at the heterogeneity of multinational enterprises (MNEs) and the relevance of firm characteristics for analyzing the determinants of outward foreign direct investment (FDI). It focuses on the role of firm-level heterogeneity when MNEs decide on the share of ownership in foreign affiliates. The authors combine two firm-specific datasets on German MNEs with varying equity stakes in Indian affiliates and assess the impact of firm characteristics on ownership shares in the context of OLS and fractional logit models, controlling for industry and location characteristics.