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Quality requirements in developing countries

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  • An, Galina
  • Puttitanun, Thitima
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    Abstract

    This paper theoretically explores how quality standards imposed by subsidiaries of multinational enterprises on local suppliers in developing countries can influence the local intermediate goods industries: they can trigger the adoption of better techniques and processes, thereby increasing the technological capability of the host country; they can also induce local innovation, a situation described in many case studies of developing countries. However, if a host country is underdeveloped, the presence of multinational firms might not bring any significant changes to the economy.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economics and Business.

    Volume (Year): 62 (2010)
    Issue (Month): 2 (March)
    Pages: 94-115

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    Handle: RePEc:eee:jebusi:v:62:y::i:2:p:94-115

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    Web page: http://www.elsevier.com/locate/jeconbus

    Related research

    Keywords: Quality requirements Technological change Multinational firms Developing countries;

    References

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    16. Haddad, Mona & Harrison, Ann, 1993. "Are there positive spillovers from direct foreign investment? : Evidence from panel data for Morocco," Journal of Development Economics, Elsevier, vol. 42(1), pages 51-74, October.
    17. Lois Stanford, 2002. "Constructing ``quality'': The political economy of standards in Mexico's avocado industry," Agriculture and Human Values, Springer, vol. 19(4), pages 293-310, December.
    18. Lall, Sanjaya, 1980. "Vertical Inter-Firm Linkages in LDCs: An Empirical Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 42(3), pages 203-26, August.
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    21. Blalock, Garrick & Gertler, Paul J., 2008. "Welfare gains from Foreign Direct Investment through technology transfer to local suppliers," Journal of International Economics, Elsevier, vol. 74(2), pages 402-421, March.
    22. Ann E. Harrison & Brian J. Aitken, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, vol. 89(3), pages 605-618, June.
    23. Ari Kokko, 1996. "Productivity spillovers from competition between local firms and foreign affiliates," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(4), pages 517-530.
    24. Findlay, Ronald, 1978. "Relative Backwardness, Direct Foreign Investment, and the Transfer of Technology: A Simple Dynamic Model," The Quarterly Journal of Economics, MIT Press, vol. 92(1), pages 1-16, February.
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