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FDI Effects on National Competitiveness: A Cluster Approach

  • Philippe Gugler
  • Serge Brunner

    ()

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    Despite the close relationship between the activities of multinational enterprises (MNEs) and the competitiveness of host countries, few studies have linked these two subjects from a global perspective. Combining Porter’s approach and the work accomplished by international business economists provides a powerful analytical tool with which to review the recent empirical and theoretical literature on the effects of foreign direct investment (FDI) on national competitiveness. The contention is that FDI can indeed be a source of competitiveness but that previous studies have neglected the role of location, in particular the role of clustering on the absorptive capacity of the host State. The aim of this paper is to provide a comprehensive conceptual framework for assessing the effects of FDI on competitiveness to guide policy-makers as well as further research. Copyright International Atlantic Economic Society 2007

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    Article provided by International Atlantic Economic Society in its journal International Advances in Economic Research.

    Volume (Year): 13 (2007)
    Issue (Month): 3 (August)
    Pages: 268-284

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    Handle: RePEc:kap:iaecre:v:13:y:2007:i:3:p:268-284
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