Description:
AbstractWe investigate the determinants of the share of very large enterprises that a country has at the industry‐level at the industry‐level, using data from the Forbes Global 2000 across 48 countries and 16 industries in the period of 2004–2010. We find significant and positive evidence for three effects affecting such share: the home market effect (HME), multinational firm effect (MFE) and economic development effect (EDE). A further industry‐specific analysis of the HME suggests that the industry‐level degree of increasing returns to scale may only partly explain the effects being positive without them being different across industries.