Review of Industrial Organization

, Volume 20, Issue 1, pp 15–31 | Cite as

Multinational Companies and Entrant Start-up Size: Evidence from Quantile Regressions

  • Holger Görg
  • Eric Strobl


This paper analyses the impact of foreign multinationals on the start-up size ofdomestic entrants in Irish manufacturing industries. We use the regression quantileestimator, which allows us to take account of the heterogeneity of entrants' start-upsize. Estimation results show that the presence of foreign multinationals in a sectorimpacts negatively on the start-up size of domestic entrants of all sizes in modernsectors and on the start-up size of large domestic entrants in traditional sectors. Thisnegative effect may be attributed to competition of domestic plants with foreignmultinationals and other domestic plants in the final goods and/or the intermediategoods market.

Entry multinational companies regression quantiles start-up size 


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Copyright information

© Kluwer Academic Publishers 2002

Authors and Affiliations

  • Holger Görg
    • 1
  • Eric Strobl
  1. 1.School of EconomicsUniversity of NottinghamNottinghamU.K

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