Optimal geographic diversification and firm performance:evidence from the U.K.

Driffield, Nigel, Du, Jun and Girma, Sourafel (2008). Optimal geographic diversification and firm performance:evidence from the U.K. Journal of Productivity Analysis, 30 (2), pp. 145-254.


This paper examines the relationship between multinationality and firm performance. The analysis is based on a sample of over 400 UK multinationals, and encompasses both service sector and manufacturing sector multinationals. This paper confirms the non-linear relationship between performance and multinationality that is reported elsewhere in the literature, but offers further analysis of this relationship. Specifically, by correcting for endogeneity in the investment decision, and for shocks in productivity across countries, the paper demonstrates that the returns to multinationality are greater than those that have been reported elsewhere, and persist to higher degrees of international diversification.

Publication DOI: https://doi.org/10.1007/s11123-008-0102-x
Divisions: Aston Business School > Economics, Finance & Entrepreneurship
Aston Business School > Aston India Foundation for Applied Research
Aston Business School
Additional Information: The original publication is available at springerlink.com
Uncontrolled Keywords: multinational,performance,productivity,Business and International Management,Economics and Econometrics,Social Sciences (miscellaneous)
Full Text Link: http://www.spri ... 752l575640h545/
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
Published Date: 2008-10
Authors: Driffield, Nigel
Du, Jun
Girma, Sourafel



Version: Accepted Version

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