IDEAS home Printed from https://ideas.repec.org/p/unm/unuint/199602.html
   My bibliography  Save this paper

Multinational Enterprises, New Technologies and Export-Oriented Industrialization in Developing Countries: Trends and Prospects

Author

Listed:
  • Kumar, Nagesh

    (United Nations University, Institute for New Technologies)

Abstract

A good deal of theoretical and empirical literature has debated the role of MNEs in the expansion of manufactured exports from developing countries. Prevailing opinion is that MNEs have played an important role in the rapid growth of manufactured exports of Asian NTEs. Empirical studies, however, have reported mixed findings on their role. This is because countries differ in the extent of export-oriented foreign direct investment (FDI) and subcontracting of production attracted from MNEs. Export-oriented FDI and subcontracting arise in the process of rationalization of production, according to international differences in the factor prices undertaken by MNEs. The relocation of production was an important trend in the 1970s, but has slowed since the mid-1980s, with the evolution of new technologies such as flexible automation and other developments in computer integrated manufacturing. This paper examines recent trends and patterns in export-oriented FDI inflows in developing countries. Inter-industry trends are examined as well as inter-country patterns in the export orientation of the overseas affiliates of US and Japanese MNEs. Recent trends in overseas production by developing country enterprises which have recently emerged as significant sources of export-oriented FDI are also summarized. The paper concludes with a discussion of the future prospects and implications for developing countries seeking to tap MNE's resources for promoting their manufactured exports.

Suggested Citation

  • Kumar, Nagesh, 1996. "Multinational Enterprises, New Technologies and Export-Oriented Industrialization in Developing Countries: Trends and Prospects," UNU-INTECH Discussion Paper Series 1996-02, United Nations University - INTECH.
    • Handle: RePEc:unm:unuint:199602
    as

    Download full text from publisher

    File URL: https://www.merit.unu.edu/publications/discussion-papers/9602.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Louis T. Wells, 1983. "Third World Multinationals: The Rise of Foreign Investments from Developing Countries," MIT Press Books, The MIT Press, edition 1, volume 1, number 026273169x, December.
    2. Gilroy, Bernard Michael, 1993. "Book Review: John H. Dunning Multinational Enterprises and the Global Economy," MPRA Paper 18660, University Library of Munich, Germany.
    3. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    4. Kenneth A. Froot, 1993. "Foreign Direct Investment," NBER Books, National Bureau of Economic Research, Inc, number froo93-1, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Erol Taymaz & Yilmaz Kilicaslan, 2001. "Subcontracting dynamics and economic development: A study on textile and engineering industries," ERC Working Papers 0108, ERC - Economic Research Center, Middle East Technical University, revised Aug 2001.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kumar, Nagesh, 1995. "International Linkages, Technology and Exports of Developing Countries: Trends and Policy Implications," UNU-INTECH Discussion Paper Series 1995-07, United Nations University - INTECH.
    2. Gammeltoft, Peter & Cuervo-Cazurra, Alvaro, 2021. "Enriching internationalization process theory: insights from the study of emerging market multinationals," Journal of International Management, Elsevier, vol. 27(3).
    3. Gilbert Kofi Adarkwah & Tine Petersen Malonæs, 2022. "Firm-specific advantages: a comprehensive review with a focus on emerging markets," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 539-585, June.
    4. Ralph Sonenshine & Kara Reynolds, 2014. "Determinants of cross-border merger premia," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(1), pages 173-189, February.
    5. Buckley, Peter J. & Hashai, Niron, 2014. "The role of technological catch up and domestic market growth in the genesis of emerging country based multinationals," Research Policy, Elsevier, vol. 43(2), pages 423-437.
    6. Balcet Giovanni & Bruschieri Silvia, 2009. "Indian multinationals in the automotive and the pharmaceutical sectors: competitive advantages and strategies," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200906, University of Turin.
    7. Sels, A.T.H., 2006. "Foreign direct investment as an entry mode. An application in emerging economies," Other publications TiSEM 583ca9b5-1691-425d-8f77-0, Tilburg University, School of Economics and Management.
    8. Boateng, Agyenim & Hua, Xiuping & Nisar, Shaista & Wu, Junjie, 2015. "Examining the determinants of inward FDI: Evidence from Norway," Economic Modelling, Elsevier, vol. 47(C), pages 118-127.
    9. Exequiel Hernandez & Mauro F Guillén, 2018. "What’s theoretically novel about emerging-market multinationals?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(1), pages 24-33, January.
    10. Alexandre MINDA (LEREPS-GRES), 2008. "The strategies of multilatinas: from the quest for regional leadership to the myth of the global corporation \r\n," Cahiers du GRES (2002-2009) 2008-08, Groupement de Recherches Economiques et Sociales.
    11. Robert E. Lipsey & Robert C. Feenstra & Carl H. Hahn & George N. Hatsopoulos, 1999. "The Role of Foreign Direct Investment in International Capital Flows," NBER Chapters, in: International Capital Flows, pages 307-362, National Bureau of Economic Research, Inc.
    12. Robert C. Feenstra, "undated". "Facts And Fallacies About Foreign Direct Investment," Department of Economics 98-04, California Davis - Department of Economics.
    13. Degong Ma & Chun Lei & Farid Ullah & Raza Ullah & Qadar Bakhsh Baloch, 2019. "China’s One Belt and One Road Initiative and Outward Chinese Foreign Direct Investment in Europe," Sustainability, MDPI, vol. 11(24), pages 1-13, December.
    14. Filippov, Sergey, 2008. "Russia's emerging multinationals: trends and issues," MERIT Working Papers 2008-062, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    15. Tolentino, Paz Estrella, 2008. "The determinants of the outward foreign direct investment of China and India: Whither the home country?," MERIT Working Papers 2008-049, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    16. Ilgaz Arikan & Asli M. Arikan & Oded Shenkar, 2022. "Revisiting emerging market multinational enterprise views: The Goldilocks story restated," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 781-802, June.
    17. Victoria L. Crittenden & William F. Crittenden, 2010. "Strategic Management In Emerging Economies: A Research Agenda," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 1(1).
    18. Majumdar, Sumit K., 2016. "R&D and the overseas earnings of Indian firms," Technology in Society, Elsevier, vol. 44(C), pages 104-111.
    19. Santiso, Javier, 2008. "The emergence of Latin multinationals," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    20. Yilmaz Kilicaslan & Yesim Ucdogruk Gurel & Gokhan Onder & Zeynep Karal Onder, 2019. "Why Do Turkish Firms Go Abroad to Invest?," EconWorld Working Papers 19001, WERI-World Economic Research Institute, revised Nov 2019.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unm:unuint:199602. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ad Notten (email available below). General contact details of provider: https://edirc.repec.org/data/meritnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.