Multinational Firms And Host Country Market Structure: A Review Of Empirical Literature
The role of multinational firms in the world economy is widely recognized. Multinationals’ activities produce various effects in the host countries, particularly in areas such as: economic growth, technology and innovatory capacity, employment, market structure, performance and business practices, among others. In this paper we address the impact of multinationals on host country market structure. Although research in this area started a few decades ago, to our knowledge there is still no literature survey on the subject. So, through reviewing existing empirical literature we intend to shed light on the main limitations of existing studies and highlight possible avenues for future research. Our main conclusion is that the majority of studies focus on samples of manufacturing industries/firms, neglecting the service sector, despite its importance. Therefore, future research should be directed to the service sector. Additionally, future studies should explore the possibility of bidirectional causality between the presence of multinationals and the level of industry concentration. Furthermore, studies concerning the impact of foreign presence on entry, exit and survival of host country firms must use more recent data and taking into account other control variables that may affect the exit rate. Finally, future work should take into account the mode of foreign firm establishment in the host country.
|Date of creation:||Jul 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Rua Dr. Roberto Frias, 4200 PORTO|
Web page: http://www.fep.up.pt/
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.:
- Alvarez, Roberto & Görg, Holger, 2005.
"Multinationals and Plant Exit: Evidence from Chile,"
IZA Discussion Papers
1611, Institute for the Study of Labor (IZA).
- Alvarez, Roberto & Görg, Holger, 2009. "Multinationals and plant exit: Evidence from Chile," International Review of Economics & Finance, Elsevier, vol. 18(1), pages 45-51, January.
- Sathye, M, 2002. "The Impact of Foreign Banks on Market Concentration: The Case of India," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 2(1).
- Barrios, Salvador & Gorg, Holger & Strobl, Eric, 2005.
"Foreign direct investment, competition and industrial development in the host country,"
European Economic Review,
Elsevier, vol. 49(7), pages 1761-1784, October.
- BARRIOS, Salvador & GOERG, Holger & STROBL, Eric, 2004. "Foreign direct investment, competition and industrial development in the host country," CORE Discussion Papers 2004011, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Kevin Amess & Barbara Roberts, 2005. "The impact of foreign and state ownership on post-transition industrial concentration: the case of Polish manufacturing," Economic Change and Restructuring, Springer, vol. 38(3), pages 211-225, December.
- Sanjaya Lall, 1979. "Multinationals and market structure in an open developing economy: The case of Malaysia," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 115(2), pages 325-350, June.
- Ann E. Harrison & Brian J. Aitken, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, vol. 89(3), pages 605-618, June.
- Roger Bandick, 2010. "Multinationals and plant survival," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(4), pages 609-634, December.
- Iršová, Zuzana & Havránek, Tomáš, 2013.
"Determinants of Horizontal Spillovers from FDI: Evidence from a Large Meta-Analysis,"
Elsevier, vol. 42(C), pages 1-15.
- Tomas Havranek & Zuzana Irsova, 2011. "Determinants of Horizontal Spillovers from FDI: Evidence from a Large Meta-Analysis," Working Papers 2011/07, Czech National Bank, Research Department.
- Willmore, Larry, 1989. "Determinants of industrial structure: A Brazilian case study," World Development, Elsevier, vol. 17(10), pages 1601-1617, October.
- José Mata & Pedro Portugal, 2001. "The Survival of New Domestic and Foreign Owned Firms," Working Papers w200101, Banco de Portugal, Economics and Research Department.
- Curry, B & George, K D, 1983. "Industrial Concentration: A Survey," Journal of Industrial Economics, Wiley Blackwell, vol. 31(3), pages 203-55, March.
- Koen De Backer & Leo Sleuwaegen, 2003.
"Does Foreign Direct Investment Crowd Out Domestic Entrepreneurship?,"
Review of Industrial Organization,
Springer, vol. 22(1), pages 67-84, February.
- Koen De Backer & Leo Sleuwaegen, 2002. "Does foreign direct investment crowd out domestic entrepreneurship?," Vlerick Leuven Gent Management School Working Paper Series 2002-14, Vlerick Leuven Gent Management School.
- Constantine Bourlakis, 1987. "Multinational corporations and domestic market structure: The case of Greek manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 123(4), pages 719-733, December.
- Rosa Forte & Paula Sarmento, 2012. "Foreign Presence and Market Concentration: The Case of Portuguese Manufacturing Industries," FEP Working Papers 444, Universidade do Porto, Faculdade de Economia do Porto.
- Nigel Driffield, 2001. "Inward Investment and Host Country Market Structure: The Case of the U.K," Review of Industrial Organization, Springer, vol. 18(4), pages 363-378, June.
- Ferragina, Anna & Pittiglio, Rosanna & Reganati, Filippo, 2012. "Multinational status and firm exit in the Italian manufacturing and service sectors," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 363-372.
- Caves, Richard E & Porter, Michael E, 1980. "The Dynamics of Changing Seller Concentration," Journal of Industrial Economics, Wiley Blackwell, vol. 29(1), pages 1-15, September.
- Andrew Burke & Holger Görg & Aoife Hanley, 2008. "The impact of foreign direct investment on new firm survival in the UK: evidence for static versus dynamic industries," Small Business Economics, Springer, vol. 31(4), pages 395-407, December.
- Nigel Driffield, 2001. "Inward investment, industry concentration and the speed of adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(2), pages 193-214, June.
- Holger G–rg & Eric Strobl, 2003.
"Multinational Companies, Technology Spillovers and Plant Survival,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 105(4), pages 581-595, December.
- Holger Görg & Eric Strobl, 2003. "Multinational Companies, Technology Spillovers, and Plant Survival," Discussion Papers of DIW Berlin 366, DIW Berlin, German Institute for Economic Research.
- Anwar, Sajid & Sun, Sizhong, 2012. "FDI and market entry/exit: Evidence from China," Journal of Asian Economics, Elsevier, vol. 23(5), pages 487-498.
- Gorg, Holger & Strobl, Eric, 2001. "Multinational Companies and Productivity Spillovers: A Meta-analysis," Economic Journal, Royal Economic Society, vol. 111(475), pages F723-39, November.
- Meghana Ayyagari & Renáta Kosová, 2010. "Does FDI Facilitate Domestic Entry? Evidence from the Czech Republic," Review of International Economics, Wiley Blackwell, vol. 18(1), pages 14-29, 02.
When requesting a correction, please mention this item's handle: RePEc:por:fepwps:497. 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: ()
If references are entirely missing, you can add them using this form.