When multinationals leave: a CGE analysis of the impact of divestments

dc.contributor.authorGómez Gómez-Plana, Antonio
dc.contributor.authorLatorre, María C.
dc.contributor.departmentEconomíaes_ES
dc.contributor.departmentEkonomiaeu
dc.date.accessioned2018-09-04T06:43:44Z
dc.date.available2018-09-04T06:43:44Z
dc.date.issued2014
dc.description.abstractMost studies on Multinational Enterprises (MNEs) focus on the impact of their expansion through inward or outward foreign direct investment (FDI) flows. However, divestments are quite common among the operations of MNEs. In order to derive their effects, we build a computable general equilibrium (CGE) model that includes two non-standard characteristics: the presence of MNEs and unemployment. The model is applied to the Spanish economy, where FDI inflows have surpassed divestments at the aggregate level in the period 2005-2009, although divestments have been sizeable in ten sectors. We analyse two different scenarios: 1) divestments that involve the closure of plants of foreign affiliates and 2) divestments where national firms buy the plant of foreign affiliates. The model allows estimating the overall impact of the divestments occurring simultaneously in ten sectors and in particular sectors. Results not only show that national acquisitions are less harmful than closures, but quantify those effects, and provide information on the role of the divesting sector. Some adjustment costs arise in all scenarios.en
dc.description.sponsorshipFinancial support from the Spanish Ministry of Economics and Competitiveness through the projects ECO 2011-24304 (A. G. Gómez-Plana) and ECO2011-29314-C02-02 (María C. Latorre) is gratefully acknowledged.en
dc.format.extent43 p.
dc.format.mimetypeapplication/pdfen
dc.identifier.doi10.5018/economics-ejournal.ja.2014-6
dc.identifier.issn1864-6042 (Electronic)
dc.identifier.urihttps://academica-e.unavarra.es/handle/2454/30423
dc.language.isoengen
dc.publisherKiel Institute for World Economyen
dc.publisherZBW – Leibniz Information Centre for Economicsen
dc.relation.ispartofEconomics: the Open Access Open-assessment E-journal, Vol. 8, 2014-6en
dc.relation.projectIDinfo:eu-repo/grantAgreement/MICINN//ECO2011-24304/ES/
dc.relation.projectIDinfo:eu-repo/grantAgreement/MICINN//ECO2011-29314-C02-01/ES/
dc.relation.publisherversionhttps://doi.org/10.5018/economics-ejournal.ja.2014-6
dc.rights© Author(s) 2014. Licensed under the Creative Commons License - Attribution 3.0en
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/
dc.subjectFDIen
dc.subjectDisinvestmentsen
dc.subjectClosuresen
dc.subjectNational acquisitionsen
dc.subjectSpainen
dc.titleWhen multinationals leave: a CGE analysis of the impact of divestmentsen
dc.typeinfo:eu-repo/semantics/article
dc.type.versioninfo:eu-repo/semantics/publishedVersion
dspace.entity.typePublication
relation.isAuthorOfPublication9de7173d-7c21-4f50-89be-b6124a210a73
relation.isAuthorOfPublication.latestForDiscovery9de7173d-7c21-4f50-89be-b6124a210a73

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