Affiliation:
1. Southwest University of Finance and Economics: Southwestern University of Finance and Economics
Abstract
Abstract
This paper presents a theoretical model based on transaction cost analysis and the resource-based view. It establishes that the corporate boundaries of multinational corporations are determined by the length of the product life cycle and the level of intellectual property protection in the host country. The empirical results based on the panel data of U.S. multinational corporations' import trade of 208 types of products in 18 countries from 2002 to 2013 validate the extrapolation results of the theoretical model. The study finds that the most significant determinants of multinational corporations' boundaries are the length of the product life cycle and the level of IPR protection in the host country.
Publisher
Research Square Platform LLC
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