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Eric Strobl, Holger Gorg and Salvador Barrios
''The Evolution of the Firm Size Distribution and Nationality of Ownerhship''
( 2005, Vol. 12 No.1 )
It has recently been shown that the firm size distribution is initially skewed to the right and then evolves over time to become more lognormal, and argued that this is likely due to firms initially facing financial constraints, see Cabral and Mata(2003). We conjecture that, if this is true, then such a pattern should be much less apparent for multinational companies for which financial constraints are generally considered to be lower than non-multinationals. Moreover, such a difference should be re-enforced by the fact that multinationals are less likely to face selection issues. These propositions are confirmed using plant level Irish manufacturing data.
JEL: L6 - Industry Studies: Manufacturing: General
F2 - International Factor Movements and International Business: General
Manuscript Received : Jan 03 2005 Manuscript Accepted : Jan 04 2005

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