IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-04645-4_4.html
   My bibliography  Save this book chapter

A theory of foreign direct investment, technology transfer, trade and capital movements

In: Alternatives to the Multinational Enterprise

Author

Listed:
  • Mark Casson

Abstract

This chapter considers the role of MNEs in trade and capital movements. The analysis is based on very strong assumptions which are equivalent to ignoring the potential social costs of MNEs. The emphasis is much more on the fact that in an imperfect world the creation of an MNE may under certain conditions improve efficiency. The analysis demonstrates, firstly, that under certain conditions an MNE’s location of production is similar to that generated by international competition between’ purely national firms and, secondly, that foreign direct investment flows owe little or nothing to international differences in capital endowments, and almost everything to the economics of horizontal and vertical integration in specific industries. The analysis constitutes an extension and application of the Heckscher-Ohlin (HO) model of trade. Non-specialist readers, or those mainly interested in applications, may prefer to omit this chapter on a first reading.

Suggested Citation

  • Mark Casson, 1979. "A theory of foreign direct investment, technology transfer, trade and capital movements," Palgrave Macmillan Books, in: Alternatives to the Multinational Enterprise, chapter 4, pages 63-81, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-04645-4_4
    DOI: 10.1007/978-1-349-04645-4_4
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:pal:palchp:978-1-349-04645-4_4. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    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.