Motives of large multinationals investing in small transition countries: A literature review
AbstractEconomic theory suggests that multinationals have clear objectives when investing abroad. It lists a considerable number of factors which may influence the decision but it falls short of explaining them. The paper investigates how the most popular hypotheses presented in the literature perform in the light of recent experiences. It reviews a series of case studies on western multinationals which entered into a joint venture with eastern companies. It comes to the conclusion that investment decisions are governed by a bundle of overlapping motives. The benefits of geographically dispersed but well co-ordinated activities are seen in certain types of spill-overs that can only be generated in networks. These benefits can be best described as economies of scope.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 668.
Date of creation: 1995
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lall, Sanjaya, 1973. "Transfer-Pricing by Multinational Manufacturing Firms," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 35(3), pages 173-95, August.
- Irving B. Kravis & Robert E. Lipsey, 1982.
"The Location of Overseas Production and Production for Export by U.S. Multinational Firms,"
NBER Working Papers
0482, National Bureau of Economic Research, Inc.
- Kravis, Irving B. & Lipsey, Robert E., 1982. "The location of overseas production and production for export by U.S. multinational firms," Journal of International Economics, Elsevier, vol. 12(3-4), pages 201-223, May.
- Lall, Sanjaya, 1979. "Transfer pricing and developing countries: Some problems of investigation," World Development, Elsevier, vol. 7(1), pages 59-71, January.
- John Cantwell & Franceses Sanna-Randaccio, 1993. "Multinationality and firm growth," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 129(2), pages 275-299, June.
- Naujoks, Petra & Schmidt, Klaus-Dieter, 1994. "Outward processing in Central and East European transition countries: Issues and results from German statistics," Kiel Working Papers 631, Kiel Institute for the World Economy.
- John H Dunning, 1980. "Towards an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, Palgrave Macmillan, vol. 11(1), pages 9-31, March.
- Yoong-Deok Jeon, 1992. "The determinants of Korean foreign direct investment in manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 128(3), pages 527-542, September.
- James Riedel, 1975. "The nature and determinants of export-oriented direct foreign investment in a developing country: A case study of Taiwan," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 111(3), pages 505-528, 09.
- Agarwal, Jamuna Prasad, 1989. "Determinants and structural development of FDI in Pacific-Rim developing countries," Kiel Working Papers 382, Kiel Institute for the World Economy.
- Alan Rugman, 1987. "Multinationals and trade in services: A transaction cost approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 123(4), pages 651-667, December.
- Fischer, Bernhard & Herken-Krauer, Juan-Carlos & Lücke, Matthias & Nunnenkamp, Peter, 1988. "Capital-intensive industries in newly industrializing countries : the case of the Brazilian automobile and steel industries," Open Access Publications from Kiel Institute for the World Economy 411, Kiel Institute for the World Economy (IfW).
- Culem, Claudy G., 1988. "The locational determinants of direct investments among industrialized countries," European Economic Review, Elsevier, vol. 32(4), pages 885-904, April.
- Dicke, Hugo & Foders, Federico, 2000. "Wirtschaftliche Auswirkungen einer EU-Erweiterung auf die Mitgliedstaaten," Open Access Publications from Kiel Institute for the World Economy 2510, Kiel Institute for the World Economy (IfW).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dieter Stribny).
If references are entirely missing, you can add them using this form.