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The economic analysis of multinationals and foreign direct investment: a review

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  • María C. Latorre

    ()
    (Universidad Complutense de Madrid)

Abstract

This article provides an up-to-date, comprehensive synthesis and evaluation of the existing literatura on multinational firms and foreign direct investment. Unlike most previous reviews it combines severalinsights showing their inconsistencies and complementarities. Through a chronological description it presents the main strands since the earliest perfect competition studies from the 1960s till some new recent contributions such as the knowledge-capital model, heterogeneous firms models, and internalisation issues. The paper also offers a new perspective, by reviewing the available computable general equilibrium models that include multinationals and foreign direct investment.

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Bibliographic Info

Article provided by IEF in its journal Hacienda Pública Española/Revista de Economía Pública.

Volume (Year): 191 (2009)
Issue (Month): 4 (December)
Pages: 97-126

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Handle: RePEc:hpe:journl:y:2009:v:191:i:4:p:97-126

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Related research

Keywords: Multinational enterprises; Foreign direct investment; Computable general equilibrium models.;

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References

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Cited by:
  1. Zhou, Jing & Latorre, María C., 2013. "The impact of FDI on the production networks between China and East Asia and the role of the U.S. and ROW as final markets," MPRA Paper 51384, University Library of Munich, Germany.
  2. Gómez-Plana, Antonio G. & Latorre, María C., 2014. "When multinationals leave: A CGE analysis of the impact of divestments," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 8(6), pages 1-41.

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