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Multinational enterprises and structural transformation in emerging and developing countries: A survey of the literature

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  • Fu, Xiaolan
  • Emes, David
  • Hou, Jun

Abstract

This paper presents a review of the literature concerning the relationship between multinational enterprises (MNEs) and structural transformation in emerging and developing countries based on journal publications over the 2000 to 2020 period. Both outward and inward foreign direct investment by multinationals were found to have strong potential implications for structural change, in the form of knowledge transfer and capabilities upgrading, productivity growth, export promotion, industrial diversification and service sector growth. With rapid development and diffusion of digital technologies, MNEs in the service sector and the digital economy may also open windows of opportunity for developing countries to catch-up in the service sector. The strength and sign of these effects were, however, dependent most prominently on (1) the characteristics of the MNEs and the host countries and (2) the compatibility of the MNEs and the host country. Policy and managerial implications are discussed. A set of areas for future research are also identified.

Suggested Citation

  • Fu, Xiaolan & Emes, David & Hou, Jun, 2021. "Multinational enterprises and structural transformation in emerging and developing countries: A survey of the literature," International Business Review, Elsevier, vol. 30(2).
    • Handle: RePEc:eee:iburev:v:30:y:2021:i:2:s0969593121000081
    DOI: 10.1016/j.ibusrev.2021.101801
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    Citations

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    Cited by:

    1. Muhammad Usman & Rizwan Shabbir & Ilyas Ahmad & Ahsan Zubair, 2022. "Host Countries’ Institutional Environment and Multinational Enterprises: Does Home-Host Developmental Status Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2640-2664, December.
    2. Heim, Irina & Kalyuzhnova, Yelena & Ghobadian, Abby, 2023. "Win-win strategies for firms operating in resource-abundant countries: Technological spillovers and a collaborative diversification policy," Resources Policy, Elsevier, vol. 83(C).
    3. Syed Abdul Rehman Khan & Ridwan Lanre Ibrahim & Abul Quasem Al-Amin & Zhang Yu, 2022. "An Ideology of Sustainability under Technological Revolution: Striving towards Sustainable Development," Sustainability, MDPI, vol. 14(8), pages 1-21, April.
    4. Haini, Hazwan & Wei Loon, Pang & Li Li, Pang, 2023. "Can export diversification promote export upgrading? Evidence from an oil-dependent economy," Resources Policy, Elsevier, vol. 80(C).
    5. Osabutey, Ellis L.C. & Papanastassiou, Marina & Jin, Zhongqi & Navare, Jyoti & Agyapong, Ahmed, 2023. "Revisiting FSAs and CSAs in Sub-Saharan Africa: Evidence from Ghanaian Firms," International Business Review, Elsevier, vol. 32(4).

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