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The economic analysis of multinationals and foreign direct investment: a review

  • María C. Latorre

    ()

    (Universidad Complutense de Madrid)

This article provides an up-to-date, comprehensive synthesis and evaluation of the existing literatura on multinational firms and foreign direct investment. Unlike most previous reviews it combines severalinsights showing their inconsistencies and complementarities. Through a chronological description it presents the main strands since the earliest perfect competition studies from the 1960s till some new recent contributions such as the knowledge-capital model, heterogeneous firms models, and internalisation issues. The paper also offers a new perspective, by reviewing the available computable general equilibrium models that include multinationals and foreign direct investment.

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Article provided by IEF in its journal Hacienda Pública Española/Revista de Economía Pública.

Volume (Year): 191 (2009)
Issue (Month): 4 (December)
Pages: 97-126

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Handle: RePEc:hpe:journl:y:2009:v:191:i:4:p:97-126
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