Indian Industrialisation, Multinational Enterprises and Gains from Trade
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.
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- Broll, Udo & Gilroy, Bernard Michael, 1985. "International Division of Labour and Intra-Trade," MPRA Paper 18042, University Library of Munich, Germany.
- 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.
- Donges, Juergen B. & Juhl, Paulgeorg, 1978. "Deutsche Privatinvestitionen im Ausland: Export von Arbeitsplätzen?," Kiel Working Papers 81, Kiel Institute for the World Economy.
- Broll, Udo & Gilroy, Bernard Michael, 1985. "Developing Countries in Light of Intra-Trade," MPRA Paper 18046, University Library of Munich, Germany.
- George Norman & John Dunning, 1984. "Intra-industry foreign direct investment: Its rationale and trade effects," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 120(3), pages 522-540, September.
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