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Indian Industrialisation, Multinational Enterprises and Gains from Trade

Author

Listed:
  • Broll, Udo
  • Gilroy, Bernard Michael

Abstract

Intra-foreign direct investment flows indicate an intensive specialization effect within the various domestic branches of the international economy combined with an increasing expansion of the differentiated product sortiments of the world's multinational firms. Rationalisation of operations on a world basis allows firms to achieve increased economies of scale through international division of production. Applying a revealed preference argumentation a simple two-good, two-factor, two-country model including the empirically observed price-cost margin distortions in Indian manufacturing industries is formulated in the following in which the effects of multinational enterprises upon tbe gains-from-trade theorem may be oxamined theoretically.

Suggested Citation

  • Broll, Udo & Gilroy, Bernard Michael, 1986. "Indian Industrialisation, Multinational Enterprises and Gains from Trade," MPRA Paper 18057, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:18057
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    File URL: https://mpra.ub.uni-muenchen.de/18057/1/MPRA_paper_18057.pdf
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    References listed on IDEAS

    as
    1. George Norman & John Dunning, 1984. "Intra-industry foreign direct investment: Its rationale and trade effects," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 120(3), pages 522-540, September.
    2. Horst Herberg & Murray C. Kemp, 1969. "Some Implications of Variable Returns to Scale," Canadian Journal of Economics, Canadian Economics Association, vol. 2(3), pages 403-415, August.
    3. Donges, Juergen B. & Juhl, Paulgeorg, 1978. "Deutsche Privatinvestitionen im Ausland: Export von Arbeitsplätzen?," Kiel Working Papers 81, Kiel Institute for the World Economy.
    4. Broll, Udo & Gilroy, Bernard Michael, 1985. "International Division of Labour and Intra-Trade," MPRA Paper 18042, University Library of Munich, Germany.
    5. Broll, Udo & Gilroy, Bernard Michael, 1985. "Developing Countries in Light of Intra-Trade," MPRA Paper 18046, University Library of Munich, Germany.
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    Cited by:

    1. Gilroy, Bernard Michael, 1987. "The role of intra-firm trade," MPRA Paper 18039, University Library of Munich, Germany.
    2. Gilroy, Bernard Michael, 1988. "Die Schweiz im Spannungsfeld der Welthandels- und Strukturanpassungsprobleme [Switzerland in the area of conflict of world trade and structural adjustment problems]," MPRA Paper 21080, University Library of Munich, Germany.

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F1 - International Economics - - Trade

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