ERC Starting Grant · 2023
Multinationals (MNCs) are key drivers of economic growth, accounting for 33% of global output (OECD 2018). However, within MNCs, the economic performance of foreign affiliates declines markedly with distance from headquarters (HQ). This pattern implies the existence of frictions that restrict how much economic growth foreign direct investment (FDI) can generate in host countries. Understanding the underlying mechanisms has important implications for the economic benefits of FDI and FDI policy. Yet, they remain little understood. In this project, I propose a novel explanation: management problems at a distance. Management problems can be severe even in purely local settings (e.g., Gibbons…
From the public funding record at EU CORDIS. Describes the funded project, not the reviews below.