Factors influencing the Internationalisation of Firms: Micro Foundations of Macro Determinants
We draw on insights from the theory of the multinational enterprise (MNE) to explain outward investment and (thus) internationalisation. We claim that micro insights from the work of Stephen Hymer, Edith Penrose and other extant theories of the MNE can serve as micro foundations of some macro determinants of internationalisation. The focus on macro determinants pursues and develops an earlier critique of the theory of the MNE by Penrose; that it fails to distinguish between intra-national and inter-national expansion of firms. We propose demand-side national business cycle considerations as a Penrose-inspired answer to the Penrosean critique. Our evidence derives from USA and UK data, supports insights from Hymer, Vernon, Penrose and our response to the Penrosean challenge.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (353-1) 863 2000
Fax: (353-1) 863 2100
Web page: http://www.esri.ie
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pitelis, Christos, 1996. "Effective Demand, Outward Investment and the (Theory of the) Transnational Corporation: An Empirical Investigation," Scottish Journal of Political Economy, Scottish Economic Society, vol. 43(2), pages 192-206, May.
- Charles P. Kindleberger, 2002. "Stephen Hymer and the Multinational Corporation," Contributions to Political Economy, Oxford University Press, vol. 21(1), pages 5-7, December.
- Pitelis, Christos N., 2004. "Edith Penrose and the resource-based view of (international) business strategy," International Business Review, Elsevier, vol. 13(4), pages 523-532, August.
- Pesaran, M. H. & Shin, Y. & Smith, R. J., 1996. "Testing for the 'Existence of a Long-run Relationship'," Cambridge Working Papers in Economics 9622, Faculty of Economics, University of Cambridge.
- Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan, vol. 24(4), pages 625-645, December.
- repec:fth:inseep:9645 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:esr:wpaper:dynreg36. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sarah Burns)
If references are entirely missing, you can add them using this form.