Discussion Paper

No. 2015-23 | March 30, 2015
A Microeconometric Analysis of the Springboard Subsidiary: The Case of Spanish Firms

Abstract

This article provides a microeconometric analysis of the distinctive characteristics of springboard subsidiaries that have a positive impact on the subsidiaries’ performance. Based on panel data estimations for subsidiaries of European multinational companies with a presence in Spain, the authors found that if the subsidiary located in the springboard country is a springboard subsidiary, its performance increases by 3.6%. When the subsidiary has a technological relationship with another subsidiary, its performance increases by 1.9%. If the subsidiary that has the technological relationship is a springboard subsidiary located in a springboard country, this increases performance by 1.8%. Growth of 1% in absorption capacity increases a subsidiary's performance by 1.2%. Finally, low autonomy reduces the performance of a subsidiary by 34.4% compared to independent subsidiaries or those with a high degree of autonomy.

Data Set

JEL Classification:

C23, D22, J25

Assessment

  • Downloads: 1761

Links

Cite As

Carolina Caicedo Marulanda, Jhon James Mora Rodríguez, José Pla-Barber, and Fidel León Darder (2015). A Microeconometric Analysis of the Springboard Subsidiary: The Case of Spanish Firms. Economics Discussion Papers, No 2015-23, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2015-23


Comments and Questions


Anonymous - Invited Reader Comment 1
April 15, 2015 - 08:46

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Carolina Caicedo Marulanda, Jhon James Mora Rodríguez, José Pla Barber, and Fidel León Darder - Reply to Invited Reader Comment 1
April 20, 2015 - 08:48

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Anonymous - Referee Report 1
April 29, 2015 - 11:16

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Carolina Caicedo Marulanda, Jhon James Mora Rodríguez, José Pla Barber, and Fidel León Darder - Reply to Referee Report 1
May 15, 2015 - 08:32

See attached file