Financial constraints have been found to play an important role on various aspects of firmbehavior. Yet, their effects on firm survival have been largely neglected. We use a panel of9420 newly established UK firms over the period 1997-2002 to study the effects offinancial variables on firms´...

We consider the plant location decision of a multinational, which has the option to invest in a more or aless technologically advanced country. We find that in the absence of exporting by the local firms, themultinational will invest in the country lagging behind, unless the firms in that...