Subsidies and MNE investment location choices: Unravelling the effects of firm specificity and immediacy

Q1 Social Sciences

Transnational Corporations Pub Date : 2023-12-22 DOI:10.18356/2076099x-30-3-2

P. Mayer, C. Sabel

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引用次数: 0

Abstract

Industrialized countries increasingly use targeted subsidies to lessen firms’ disadvantages caused by climate change, geopolitical realignment of trade relationships and local COVID-19 pandemic dislocations. The debate over the United States Inflationary Reduction Act and the European Union criticism of it because of its effect on firms’ investment location choices exemplify how subsidies affect investment flows. We investigate to what extent different subsidy schemes affect firms’ investment location choices and explore the effect on two dimensions: immediacy (direct versus indirect) and firm specificity (firm-specific versus non-firm-specific). Using a sample of United States MNEs and their investments in subsidiaries in the European Union and China, we find that direct subsidies have a greater positive effect on investment than indirect subsidies, and that non-firm-specific subsidies have a greater positive effect than firm-specific subsidies. Our study establishes a more nuanced understanding of subsidy effects, suggesting that policymakers should align their subsidy schemes for attracting foreign direct investment accordingly.

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补贴与跨国企业的投资地点选择：解读企业特殊性和直接性的影响

工业化国家越来越多地使用有针对性的补贴，以减少企业因气候变化、贸易关系的地缘政治调整和地方COVID-19大流行病混乱而处于不利地位。有关美国《通货膨胀削减法》的争论以及欧盟因该法案对企业投资地点选择的影响而对其提出的批评，都说明了补贴是如何影响投资流动的。我们调查了不同补贴计划对企业投资地点选择的影响程度，并从两个维度探讨了这种影响：直接性（直接与间接）和企业特殊性（特定企业与非特定企业）。我们以美国跨国企业及其在欧盟和中国的子公司投资为样本，发现直接补贴比间接补贴对投资的积极影响更大，非企业特定补贴比企业特定补贴的积极影响更大。我们的研究使人们对补贴效应有了更细致的了解，建议政策制定者相应调整吸引外国直接投资的补贴计划。

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来源期刊

Transnational Corporations Social Sciences-Political Science and International Relations

CiteScore

4.50

自引率

0.00%

发文量

期刊介绍： Transnational Corporations is a double-blind refereed journal published three times a year by UNCTAD. Its basic objective is to publish policy-oriented articles and research notes that provide insights into the economic, legal, social and cultural impacts of transnational corporations and foreign direct investment in an increasingly global economy and the policy implications that arise therefrom. It focuses especially on political and economic issues related to transnational corporations.