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Globalisation and the Small Economy: The Case of the Netherlands

Author

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  • Hogenbirk, Annelies
  • Narula, Rajneesh

    (MERIT)

Abstract

In this paper, we have examined the importance and implications of globalisation due to FDI for one particular small country: the Netherlands. Although it has limited resources and size, the Netherlands is home to the sixth largest outward FDI stock in the world, and also is one of the most important destinations for inward FDI activity. Its location advantages are, inter alia, a function of its de facto market size, given its central location within the EU, and its well developed infrastructure. Furthermore, the growing competitiveness of the service sector in the Netherlands plays a pivotal role. Other small economies can benefit from the Dutch experience, by investing in improving their competitiveness, since usually their activities are concentrated in only a few sectors. The need to maintain and upgrade their location advantages, by adopting new technologies and upgrading their created assets, is central to their survival.

Suggested Citation

  • Hogenbirk, Annelies & Narula, Rajneesh, 1999. "Globalisation and the Small Economy: The Case of the Netherlands," Research Memorandum 002, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:umamer:1999002
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    File URL: https://unu-merit.nl/publications/rmpdf/1999/rm1999-002.pdf
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    References listed on IDEAS

    as
    1. Narula, Rajneesh & Dunning, John H., 1998. "Globalisation and New Realities for MNE-Developing Host Country Interaction," Research Memorandum 011, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    2. Brouthers, Keith D. & Brouthers, Lance Eliot, 1997. "Explaining national competitive advantage for a small European country: A test of three competing models," International Business Review, Elsevier, vol. 6(1), pages 53-70, February.
    3. Dani Rodrik, 1998. "Has Globalization Gone Too Far?," Challenge, Taylor & Francis Journals, vol. 41(2), pages 81-94, March.
    4. John H. Dunning, 1997. "The European Internal Market Programme and Inbound Foreign Direct Investment," Journal of Common Market Studies, Wiley Blackwell, vol. 35(1), pages 1-30, March.
    5. Michael Porter, 1994. "The Role of Location in Competition," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(1), pages 35-40.
    6. John H. Dunning, 1997. "The European Internal Market Programme and Inbound Foreign Direct Investment," Journal of Common Market Studies, Wiley Blackwell, vol. 35(2), pages 189-223, June.
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    1. Antalóczy, Katalin & Éltető, Andrea, 2002. "Magyar vállalatok nemzetköziesedése - indítékok, hatások és problémák [The internationalization of Hungarian companies - motives, effects and problems]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 158-172.

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