Multinational Enterprises International Trade And Productivity Growth

We estimate international technology spillovers to U.S. manufacturing firms via imports and foreign direct investment (FDI) between 1987 and 1996. In contrast to earlier work, our results suggest that FDI leads to substantial productivity gains for domestic firms. The size of FDI spillovers is economically important, accounting for about 11 percent of productivity growth in U.S. firms between 1987 and 1996. In addition, there is some evidence for import-related spillovers, but it is weaker than for FDI spillovers. The paper also gives a detailed account of why our study leads to results different from those found in previous work. This analysis indicates that our results are also likely to apply to other countries and periods.

We estimate international technology spillovers to U.S. manufacturing firms via imports and foreign direct investment (FDI) between the years of 1987 and 1996. In contrast to earlier work, our results suggest that FDI leads to substantial productivity gains for domestic firms. The size of FDI.

A great deal of public policy is harnessed to raising productivity growth. Although it is believed that the process is intimately linked to globalization, the precise links are less well known. This volume offers a comprehensive overview of links between international trade, foreign direct investment and productivity growth, providing a series of empirical analyses of these links.

A remarkable product of analytical formulation, data disaggregation and methodological rigour. Anthony P. D Costa, Pacific Affairs Cross-border investment is a key driver of the globalisation process and multinational enterprises a key driver of productivity growth. This new book offers a comprehensive and informed evaluation of the role of multinationals in the world s fastest growing region. The book will not only be of interest to researchers and students, but also to analysts in the policy making community. David Greenaway, University of Nottingham, UK This volume offers a wealth of information and insights into the roles of multinational enterprises in shaping recent economic developments in East and South Asia. These direct investments, which are now the dominant source of finance for the developing regions globally, are generally welcomed today, though this was untrue earlier. However, the cases in this volume draw out ways and contexts in which the greatest advantage may be sought from these capital inflows. Robert E.B. Lucas, Boston University, US Foreign direct investment by MNCs, once considered the bane of developing countries, is today a leading indicator of their relative success. The reality is more complicated, however, as this fresh assessment of the role of MNCs in Asia explains clearly and persuasively. This study is a major contribution to literature on the role of MNCs in developing countries, drawing heavily on the author s own original research on foreign direct investment in several Asian countries. What is the role of MNCs in developing countries and how has it changed over the past two decades? What are the cost and benefits to host developing countries of MNCs direct investment? What measures should developing countries take to attract MNCs? This book provides clear and convincing answers to these questions based on the kind of rigorous empirical analysis for which the author is renowned. James Riedel, The Johns Hopkins University School of Advanced International Studies, US This book takes a fresh look at unresolved issues associated with the role of multinational enterprises and foreign direct investment in economic development in light of the experiences of developing countries in Asia. Each chapter presents a self-contained treatment of a specific theme relating to the developmental implications of MNEs, encompassing the current state of the debate, and relevant theory and policy implications. The key aspects of MNE-development interface covered in the book include expansion of manufacturing exports, global integration through international fragmentation of production, research and development, productivity growth, susceptibility to and recovery from financial crises, macroeconomic adjustment and international competitiveness, and economic transition from plan to market. Multinational Enterprises in Asian Development will prove a valuable reference tool for academics, researchers and students focusing on trade, development and international business. Professional economists and policy makers wishing to broaden their understanding of the role of MNEs as an integral part of the international development policy will also find much to interest them in this book.

Multinational Enterprises and Host Country Development is a unique collection of papers looking at different aspects of the link between multinational enterprises and their effects on the host countries' economies. The volume studies effects of multinationals on R&D, innovation, productivity, wages, as well as growth and survival of firms in the host countries, and distinguishes direct and indirect effects through spillovers. All the analyses are conducted using firm level data for countries as diverse as China, Ireland, Sweden, Ghana, the UK or a group of countries in Central and Eastern Europe. This volume is a valuable reading for graduate students and researchers wishing to investigate the impact of multinationals.

Depending on one's point of view, multinational enterprises are either the heroes or the villains of the globalized economy. Governments compete fiercely for foreign direct investment by such companies, but complain when firms go global and move their activities elsewhere. Multinationals are seen by some as threats to national identities and wealth and are accused of riding roughshod over national laws and of exploiting cheap labor. However, the debate on these companies and foreign direct investment is rarely grounded on sound economic arguments. This book brings clarity to the debate. With the contribution of other leading experts, Giorgio Barba Navaretti and Anthony Venables assess the determinants of multinationals' actions, investigating why their activity has expanded so rapidly, and why some countries have seen more such activity than others. They analyze their effects on countries that are recipients of inward investments, and on those countries that see multinational firms moving jobs abroad. The arguments are made using modern advances in economic analysis, a case study, and by drawing on the extensive empirical literature that assesses the determinants and consequences of activity by multinationals. The treatment is rigorous, yet accessible to all readers with a background in economics, whether students or professionals. Drawing out policy implications, the authors conclude that multinational enterprises are generally a force for the promotion of prosperity in the world economy.

With an impressive array of international contributors from the UK, USA, Sweden and Peru, this book includes chapters on the following: The nature of the multinational enterprise; The theory of the firm; The location of economic activity; Industrial organization; Technology and technological change; the theory of international trade; Monetary policy; The theory of development policy; Wage determination and collective bargaining; Income distribution and welfare considerations and size of firm and size of nation.

Although labour market research is now highly topical, few studies have considered the impact of multinational firms and global competition on labour markets. This study combines an industry level and a firm level analysis on the wage and employment effects of multinational companies, which has not been attempted in any previous work. The author explains how many foreign-owned companies based in the UK pay higher wages in absolute terms than do domestically-owned firms, but not sufficiently high to match their even greater productivity. Hence, for foreign-owned firms the share of wages in output or in total income generated tends to be low. In view of this, important questions are raised regarding how global changes in the structure of production may affect labour markets and the organisation of work in the future.