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Some macro-data on the regionalisation/globalisation debate: a comment on the Rugman/Verbeke analysis

Author

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  • John H Dunning

    (Reading University Business School, Reading, UK)

  • Masataka Fujita

    (Investment Trends Section, United Nations Conference on Trade and Development, Geneva, Switzerland)

  • Nevena Yakova

    (Rutgers University, New Jersey, USA)

Abstract

This paper critiques an earlier contribution by Rugman and Verbeke (2004); and it does so by considering the global distribution of foreign direct investment (FDI). It also adds several new dimensions to the regionalisation/globalisation debate, noticeably by (i) the incorporation of inward multinational enterprise (MNE) activity, (ii) evaluating changes in the geography of FDI between 1990 and 2003, and (iii) the introduction of the concept of revealed investment comparative advantage (RICA) of countries and regions. While broadly supporting the findings of Rugman and Verbeke, our paper shows that much of the explanation for the regional concentration of FDI and MNE activity reflects that of the gross domestic product (GDP) and trade of the countries concerned, rather than any distinctive strategy on the part of investing firms. Journal of International Business Studies (2007) 38, 177–199. doi:10.1057/palgrave.jibs.8400241

Suggested Citation

  • John H Dunning & Masataka Fujita & Nevena Yakova, 2007. "Some macro-data on the regionalisation/globalisation debate: a comment on the Rugman/Verbeke analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(1), pages 177-199, January.
  • Handle: RePEc:pal:jintbs:v:38:y:2007:i:1:p:177-199
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