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States and Firms on the Periphery: The Challenges of a Globalising World

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Author Info
Benito, Gabriel () (BI Norwegian School of Management)
Narula, Rajneesh () (University of Reading Business School)

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Abstract

A key feature of globalisation has been the growth and spread of multinational enterprises (MNEs), but there is here is considerable evidence that MNEs do not regard all locations as being equivalent. MNE activity both to and from peripheral economies differs from MNE activity associated with core economies. We discuss how and why multinational enterprises may differ in their investment behaviour from and to peripheral economies, from the point of view of both states and firms. We also provide an overview of the policy issues associated with the peripheral nature of these economies per se, as well of the policy issues associated with MNEs that invest into and from peripheral economies. Inter alia, we argue that market forces cannot fully substitute for the role of governments in developing and promoting a proactive industrial policy.

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File URL: http://www.merit.unu.edu/publications/wppdf/2007/wp2007-004.pdf
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Publisher Info
Paper provided by United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology in its series UNU-MERIT Working Paper Series with number 004.

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Date of creation: 2007
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Handle: RePEc:dgr:unumer:2007004

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Web page: http://www.merit.unu.edu

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Related research
Keywords: Multinational Enterprises; Foreign Direct Investment; Industrial Policy; Organizational Behavior;

Find related papers by JEL classification:
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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References listed on IDEAS
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  1. Fosfuri, Andrea & Motta, Massimo & Ronde, Thomas, 2001. "Foreign direct investment and spillovers through workers' mobility," Journal of International Economics, Elsevier, vol. 53(1), pages 205-222, February. [Downloadable!] (restricted)
    Other versions:
  2. Lecraw, Donald J, 1977. "Direct Investment by Firms from Less Developed Countries," Oxford Economic Papers, Oxford University Press, vol. 29(3), pages 442-57, November. [Downloadable!] (restricted)
  3. Gabriel R. G. Benito, 2005. "Divestment and international business strategy," Journal of Economic Geography, Oxford University Press, vol. 5(2), pages 235-251, April. [Downloadable!] (restricted)
  4. Lall, Sanjaya & Narula,Rajneesh, 2004. "FDI and its role in economic development: Do we need a new agenda?," Research Memoranda 019, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
  5. Constantina Kottaridi, 2005. "The 'core-periphery' pattern of FDI-led growth and production structure in the EU," Applied Economics, Taylor and Francis Journals, vol. 37(1), pages 99-113, January. [Downloadable!] (restricted)
  6. Benito, Gabriel R.G. & Larimo, Jorma & Narula, Rajneesh & Pedersen, Torben, 2001. "Multinational Enterprises from Small Economies: The Internationalization Pattern of Large Companies from Denmark, Finland and Norway," Working Papers 13-2001, Copenhagen Business School, Department of International Economics and Management. [Downloadable!]
  7. Rajneesh Narula & John Dunning, 2000. "Industrial Development, Globalization and Multinational Enterprises: New Realities for Developing Countries," Oxford Development Studies, Taylor and Francis Journals, vol. 28(2), pages 141-167. [Downloadable!] (restricted)
  8. Masahisa Fujita & Jacques-François Thisse, 2003. "Does Geographical Agglomeration Foster Economic Growth? And Who Gains and Loses from It?," The Japanese Economic Review, Japanese Economic Association, vol. 54(2), pages 121-145. [Downloadable!] (restricted)
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  9. G R G Benito & B Grøgaard & R Narula, 2003. "Environmental influences on MNE subsidiary roles: economic integration and the Nordic countries," Journal of International Business Studies, Palgrave Macmillan Journals, vol. 34(5), pages 443-456, September. [Downloadable!] (restricted)
  10. Rikard Forslid & Ian Wooton, 2003. "Comparative Advantage and the Location of Production," Review of International Economics, Blackwell Publishing, vol. 11(4), pages 588-603, 09. [Downloadable!] (restricted)
    Other versions:
  11. Cantwell, John, 1995. "The Globalisation of Technology: What Remains of the Product Cycle Model?," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 155-74, February.
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