We thank an anonymous referee, Spiros Bougheas, Douglas Nelson, Pascalis Raimondos-Møller, Nils Karl Sørensen, Jørgen Ulff-Møller Nielsen, and the participants to the Second Danish International Economics Workshop for useful comments. A. Guariglia and A. Mukherjee gratefully acknowledge financial support from The Leverhulme Trust under Programme Grant F114/BF. K. Suetrong thanks the Royal Thai Government for financial support. The views presented here are solely of the authors and not necessarily of their institutions. The usual disclaimer applies.
PRODUCTIVITY DIFFERENCES AND STRATEGIC PLANT LOCATION*
Article first published online: 27 SEP 2012
© 2012 The Authors. The Manchester School © 2012 John Wiley & Sons Ltd and The University of Manchester
The Manchester School
Volume 81, Issue 5, pages 712–729, September 2013
How to Cite
GUARIGLIA, A., MUKHERJEE, A. and SUETRONG, K. (2013), PRODUCTIVITY DIFFERENCES AND STRATEGIC PLANT LOCATION. The Manchester School, 81: 712–729. doi: 10.1111/j.1467-9957.2012.02332.x
Manuscript received 4.1.11; final version received 3.7.12.
- Issue published online: 12 AUG 2013
- Article first published online: 27 SEP 2012
We consider the plant location decision of a multinational company (MNC), which has the option to invest in technologically differentiated countries. We show that the MNC's investment decision depends on the market structure of the host countries and on the possibility of exporting by the host-country firms. We also show that a conflict of interest does not necessarily arise between the plant location decision of the MNC and the preferences of the host countries.