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Transnational corporations' strategies and foreign trade patterns in MERCOSUR countries in the 1990s

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  • Daniel Chudnovsky
  • Andrés López

Abstract

Market-seeking strategies predominate in the recent FDI boom in MERCOSUR countries. In the trade performance of transnational corporation affiliates a sort of 'asymmetric integration' is clearly visible: they produce for the internal market and, to some extent, for the regional one, while import inputs and final goods from developed countries (and a significant part of these trade flows is intra-firm). Thus, even if affiliates obtained productivity gains in the 1990s, they have not yet been reflected in a significant increase in exports, and even less in extra-regional exports. Hence, the foreign direct investment boom seemingly has not yet contributed to a better insertion of MERCOSUR countries into the world economy. Copyright 2004, Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Cambridge Journal of Economics.

Volume (Year): 28 (2004)
Issue (Month): 5 (September)
Pages: 635-652

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Handle: RePEc:oup:cambje:v:28:y:2004:i:5:p:635-652

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Cited by:
  1. Keshari, Pradeep Kumar, 2012. "FDI and firm level export competitiveness in the Indian machinery industry," MPRA Paper 47069, University Library of Munich, Germany.
  2. repec:hal:wpaper:halshs-00590785 is not listed on IDEAS
  3. Alessia LO TURCO, 2005. "The EU-Mercosur Association Process. An Analysis of Bilateral Trade," Working Papers 224, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  4. Alessia LO TURCO, 2005. "Integration Agreements, FDI and Structural Reforms. An Analysis of the Determinants of European Investment in Latin America," Working Papers 229, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.

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