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States and Firms on the Periphery: The Challenges of a Globalising World

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  • Benito, Gabriel

    (BI Norwegian School of Management)

  • Narula, Rajneesh

    (University of Reading Business School)

Abstract

A key feature of globalisation has been the growth and spread of multinational enterprises (MNEs), but there is here is considerable evidence that MNEs do not regard all locations as being equivalent. MNE activity both to and from peripheral economies differs from MNE activity associated with core economies. We discuss how and why multinational enterprises may differ in their investment behaviour from and to peripheral economies, from the point of view of both states and firms. We also provide an overview of the policy issues associated with the peripheral nature of these economies per se, as well of the policy issues associated with MNEs that invest into and from peripheral economies. Inter alia, we argue that market forces cannot fully substitute for the role of governments in developing and promoting a proactive industrial policy.

Suggested Citation

  • Benito, Gabriel & Narula, Rajneesh, 2007. "States and Firms on the Periphery: The Challenges of a Globalising World," MERIT Working Papers 2007-004, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2007004
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    References listed on IDEAS

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    Cited by:

    1. Narula, Rajneesh & Van der Straaten, Khadija, 2019. "A comment on the multifaceted relationship between multinational enterprises and within-country inequality," MERIT Working Papers 2019-035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Narula, Rajneesh & Guimon, Jose, 2010. "The R&D activity of multinational enterprises in peripheral economies: evidence from the EU new member states," MERIT Working Papers 2010-048, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Narula, Rajneesh & Verbeke, Alain, 2015. "Making internalization theory good for practice: The essence of Alan Rugman's contributions to international business," Journal of World Business, Elsevier, vol. 50(4), pages 612-622.
    4. Robert Price & Andreas Wörgötter, 2011. "Estonia: Making the Most of Globalisation," OECD Economics Department Working Papers 876, OECD Publishing.
    5. Olga Petricevic & David J Teece, 2019. "The structural reshaping of globalization: Implications for strategic sectors, profiting from innovation, and the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1487-1512, December.
    6. Antonios Georgopoulos & Felicitas Nowak-Lehmann D. & Vasilios Sogiakas, 2013. "Survival Characteristics and Adjustment of MNE Affiliates in the European Integrated Market," Ibero America Institute for Econ. Research (IAI) Discussion Papers 225, Ibero-America Institute for Economic Research.

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    More about this item

    Keywords

    Multinational Enterprises; Foreign Direct Investment; Industrial Policy; Organizational Behavior;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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