IDEAS home Printed from https://ideas.repec.org/a/taf/irapec/v14y2000i4p413-426.html
   My bibliography  Save this article

What Role for Multinationals in the New Theories of International Trade and Location?

Author

Listed:
  • Grazia Ietto-Gillies

Abstract

The paper starts with a summary of the way the new theories of international trade have incorporated the role of multinational companies (MNCs) in the location of production. The main, specific assumptions used to incorporate MNCs' activities relate to joint inputs at the company's level combined with assumptions regarding costs at the plant level and spatial transaction costs. It is claimed that this approach explains multi-plant location, although it cannot discriminate between inter-regional and the inter-national multi-plant location. It is argued that nation-states should be distinguished by their regulatory regimes. The MNCs' ability to plan and organize across different regulatory regimes may give them special advantages linked to distributional issues and spread-ofactivities strategies. These strategies may lead to a pattern of industrial location not fully congruent with the one emerging from the new trade and location theories.

Suggested Citation

  • Grazia Ietto-Gillies, 2000. "What Role for Multinationals in the New Theories of International Trade and Location?," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(4), pages 413-426.
    • Handle: RePEc:taf:irapec:v:14:y:2000:i:4:p:413-426
    DOI: 10.1080/02692170050150101
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050150101
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02692170050150101?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Peter J. Buckley & Mark Casson, 1991. "A Long-run Theory of the Multinational Enterprise," Palgrave Macmillan Books, in: The Future of the Multinational Enterprise, edition 0, chapter 2, pages 32-65, Palgrave Macmillan.
    2. Peter J. Buckley & Mark Casson, 1991. "The Future of the Multinational Enterprise," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-21204-0.
    3. Bruce A. Blonigen, 2019. "Firm-Specific Assets and the Link Between Exchange Rates and Foreign Direct Investment," World Scientific Book Chapters, in: Foreign Direct Investment, chapter 3, pages 89-120, World Scientific Publishing Co. Pte. Ltd..
    4. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    5. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    6. John H. Dunning, 1977. "Trade, Location of Economic Activity and the MNE: A Search for an Eclectic Approach," Palgrave Macmillan Books, in: Bertil Ohlin & Per-Ove Hesselborn & Per Magnus Wijkman (ed.), The International Allocation of Economic Activity, chapter 12, pages 395-418, Palgrave Macmillan.
    7. Robert Z. Aliber, 1993. "The Multinational Paradigm," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262511517, December.
    8. Robert E. Baldwin & L. Alan Winters, 1989. "International Seminar on International Trade," NBER Books, National Bureau of Economic Research, Inc, number bald89-1, March.
    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. Grazia Ietto-Gillies, 2012. "The Multinational Firm: Characteristics, Activities and Explanations in Historical Context," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 14, Edward Elgar Publishing.
    2. Jonathan Michie & Christine Oughton & Mario Pianta, 2002. "Innovation and the Economy," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(3), pages 253-264.

    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. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    2. Bitzenis, Aristidis & Tsitouras, Antonis & Vlachos, Vasileios A., 2009. "Decisive FDI obstacles as an explanatory reason for limited FDI inflows in an EMU member state: The case of Greece," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(4), pages 691-704, August.
    3. Grazia Ietto-Gillies, 2014. "The Theory of the Transnational Corporation at 50+," Economic Thought, World Economics Association, vol. 3(2), pages 1-38, September.
    4. Robert-Nicoud, Frédéric & Olarreaga, Marcelo & Carrère, Céline & Fugazza, Marco, 2016. "On the heterogeneous effect of trade on unemployment," CEPR Discussion Papers 11540, C.E.P.R. Discussion Papers.
    5. Czesława Pilarska, 2018. "Efekty zewnętrzne bezpośrednich inwestycji zagranicznych z perspektywy kraju goszczącego," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 93-124.
    6. Chris Wagner, 2020. "Deducing a state-of-the-art presentation of the Eclectic Paradigm from four decades of development: a systematic literature review," Management Review Quarterly, Springer, vol. 70(1), pages 51-96, February.
    7. G. Ietto-Gillies, 1998. "Location of Affiliates and Degree of Internationalisation: An Analysis of the World's Largest 664 TNCs," CIBS Research Papers in International Business 14-98, London South Bank University CIBS.
    8. Liu, Yuli & Ge, Yuejing & Hu, Zhiding & Wang, Shufang, 2018. "Culture and capital flows—Exploring the spatial differentiation of China's OFDI," China Economic Review, Elsevier, vol. 48(C), pages 27-45.
    9. Hamid Etemad, 2022. "Perspective on early internationalizing firms: Three decades of international entrepreneurship developments," Journal of International Entrepreneurship, Springer, vol. 20(2), pages 195-217, June.
    10. Reddy, K.S. & Xie, En & Huang, Yuanyuan, 2016. "Cross-border acquisitions by state-owned and private enterprises: A perspective from emerging economies," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1147-1170.
    11. Dunning, John H., 2000. "The eclectic paradigm as an envelope for economic and business theories of MNE activity," International Business Review, Elsevier, vol. 9(2), pages 163-190, April.
    12. Fernando Mistura & Caroline Roulet, 2019. "The determinants of Foreign Direct Investment: Do statutory restrictions matter?," OECD Working Papers on International Investment 2019/01, OECD Publishing.
    13. Suder, Gabriele & Liesch, Peter W. & Inomata, Satoshi & Mihailova, Irina & Meng, Bo, 2015. "The evolving geography of production hubs and regional value chains across East Asia: Trade in value-added," Journal of World Business, Elsevier, vol. 50(3), pages 404-416.
    14. Grazia Ietto-Gillies, 2011. "The Integration and Fragmentation Roles of Transnational Companies," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume III, chapter 3, Edward Elgar Publishing.
    15. Bartels, Frank L. & Napolitano, Francesco & Tissi, Nicola E., 2014. "FDI in Sub-Saharan Africa: A longitudinal perspective on location-specific factors (2003–2010)," International Business Review, Elsevier, vol. 23(3), pages 516-529.
    16. Christos Pitelis, 2007. "Edith Penrose and a learning-based perspective on the MNE and OLI," Management International Review, Springer, vol. 47(2), pages 207-219, March.
    17. Chupryhin, Radzivon, 2021. "Determinants of Foreign Direct Investment in Europe: Bayesian Model Averaging in the Presence of Weak Exogeneity," MPRA Paper 107197, University Library of Munich, Germany.
    18. Ronald S Wall & Martijn J Burger & G A (Bert) van der Knaap, 2011. "The Geography of Global Corporate Networks: The Poor, the Rich, and the Happy Few Countries," Environment and Planning A, , vol. 43(4), pages 904-927, April.
    19. Benfratello, Luigi & D’Ambrosio, Anna & Sangrigoli, Alida, 2023. "Foreign Direct Investments in Africa: Are Chinese investors different?," Journal of Business Research, Elsevier, vol. 155(PA).
    20. Alicia Garcia-Herrero & Daniel Navia Simon, 2006. "Why Banks go to Emerging Countries and What is the Impact for the Home Economy? A Survey," Working Papers 0602, BBVA Bank, Economic Research Department.

    More about this item

    Statistics

    Access and download statistics

    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:taf:irapec:v:14:y:2000:i:4:p:413-426. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CIRA20 .

    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.