Motives of large multinationals investing in small transition countries: A literature review
Economic theory suggests that multinationals have clear objectives when investing abroad. It lists a considerable number of factors which may influence the decision but it falls short of explaining them. The paper investigates how the most popular hypotheses presented in the literature perform in the light of recent experiences. It reviews a series of case studies on western multinationals which entered into a joint venture with eastern companies. It comes to the conclusion that investment decisions are governed by a bundle of overlapping motives. The benefits of geographically dispersed but well co-ordinated activities are seen in certain types of spill-overs that can only be generated in networks. These benefits can be best described as economies of scope.
|Date of creation:||1995|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 431 8814-1
Fax: +49 431 85853
Web page: http://www.ifw-kiel.de
More information through EDIRC
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.:
- John Cantwell & Franceses Sanna-Randaccio, 1993. "Multinationality and firm growth," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 129(2), pages 275-299, June.
- Culem, Claudy G., 1988. "The locational determinants of direct investments among industrialized countries," European Economic Review, Elsevier, vol. 32(4), pages 885-904, April.
- John H Dunning, 1980. "Towards an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, Palgrave Macmillan, vol. 11(1), pages 9-31, March.
- Lall, Sanjaya, 1979. "Transfer pricing and developing countries: Some problems of investigation," World Development, Elsevier, vol. 7(1), pages 59-71, January.
- Yoong-Deok Jeon, 1992. "The determinants of Korean foreign direct investment in manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 128(3), pages 527-542, September.
- Agarwal, Jamuna Prasad, 1989. "Determinants and structural development of FDI in Pacific-Rim developing countries," Kiel Working Papers 382, Kiel Institute for the World Economy.
- Lall, Sanjaya, 1973. "Transfer-Pricing by Multinational Manufacturing Firms," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 35(3), pages 173-95, August.
- Kravis, Irving B. & Lipsey, Robert E., 1982.
"The location of overseas production and production for export by U.S. multinational firms,"
Journal of International Economics,
Elsevier, vol. 12(3-4), pages 201-223, May.
- Irving B. Kravis & Robert E. Lipsey, 1980. "The Location of Overseas Production and Production for Export by U.S. Multinational Firms," NBER Working Papers 0482, National Bureau of Economic Research, Inc.
- James Riedel, 1975. "The nature and determinants of export-oriented direct foreign investment in a developing country: A case study of Taiwan," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 111(3), pages 505-528, 09.
- Rowthorn, R E, 1992. "Intra-industry Trade and Investment under Oligopoly: The Role of Market Size," Economic Journal, Royal Economic Society, vol. 102(411), pages 402-14, March.
- Naujoks, Petra & Schmidt, Klaus-Dieter, 1994. "Outward processing in Central and East European transition countries: Issues and results from German statistics," Kiel Working Papers 631, Kiel Institute for the World Economy.
- Alan Rugman, 1987. "Multinationals and trade in services: A transaction cost approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 123(4), pages 651-667, December.
- Fischer, Bernhard & Herken-Krauer, Juan-Carlos & Lücke, Matthias & Nunnenkamp, Peter, 1988. "Capital-intensive industries in newly industrializing countries : the case of the Brazilian automobile and steel industries," Open Access Publications from Kiel Institute for the World Economy 411, Kiel Institute for the World Economy (IfW).
When requesting a correction, please mention this item's handle: RePEc:kie:kieliw:668. 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: (Dieter Stribny)
If references are entirely missing, you can add them using this form.