International relocation: firm and industry determinants
Pennings, Enrico Sleuwaegen, Leo
Pennings, Enrico
Sleuwaegen, Leo
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2000-05
Journal
Economics Letters
Book
Publication Volume
67
Publication Issue
2
Publication Begin page
179
Publication End page
186
Publication Number of pages
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Abstract
This article is the first to explore the determinants of international relocation of a firm. It is found that labour intensive firms in a highly industrialized and open economy such as Belgium tend to relocate more to other countries than their highly productive capital intensive counterparts. Access to a global network, firm size, and the rate of innovation have a positive effect on the probability of relocation. Uncertainty has a negative impact on the probability of relocation. The positive effect of firm size and profitability on the relocation decision is clearly distinct from its effect on the exit decision of a firm.
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38 Economics