TY  - JOUR
AU  - Feinberg,Susan
AU  - Phillips,Gordon
TI  - Firm-Specific Resources, Financial-Market Development and the Growth of U.S. Multinationals
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9252
PY  - 2002
Y2  - October 2002
UR  - http://www.nber.org/papers/w9252
L1  - http://www.nber.org/papers/w9252.pdf
N1  - Author contact info:
Gordon M. Phillips
Marshall School of Business
University of Southern California
Citigroup Center
Los Angeles, CA 90089
Tel: 213/740-0038
E-Mail: Gordon.Phillips@marshall.usc.edu
AB  - We study the resource allocation decisions of U.S. multinational corporations (MNCs). We examine how established MNCs grow across countries and how firm-specific resources and host country financial-market development influence MNC growth. We find evidence of intra-firm trade-offs to growth in MNCs that have limited organizational capital and high R&D, and MNCs with low external and internal financing. In countries with less developed capital markets, we find significant within-MNC trade-offs to growth between affiliates and their U.S. parents. These trade-offs diminish over time as local capital markets develop. Our evidence indicates that access to financing and organizational capital are important resources for MNC affiliate growth.
ER  -