Multinational Investment and Economic Structure: Globalisation and Competitiveness

by Narula; Rajneesh

• ISBN13: 9780415130134
• ISBN10: 0415130131
• Edition: 1st
• Format: Hardcover
• Copyright: 1996-01-29
• Publisher: Routledge

Summary

Multinational Investment and Economic Structure axmines the relationship between industrial development and foreign direct investment (FDI) activities, and the interaction between multinational (MNE) activity and economic structures. It deals with the changingstructure of the world economy as a whole, and the dynamics of the relationship between industrial development and the extent of FDI activities across countries. It evaluates the concurrent (and interrelated) evolutionary processes behind economic growth and MNE activity and how theseevolutionary forces impact on the economic structure of individual economies in the industrialized world as their economies converge through globalization.

Table of Contents

List of figures	vii
List of tables	viii
Foreword	xi
Acknowledgements	xv
Abbreviations	xvii
Introduction	1	(10)
The research objectives and why it matters	1	(3)
Dynamic aspects of FDI and growth: the link to `new' growth theories	4	(4)
How this book is organised	8	(3)
The Dynamics of FDI And Economic Growth	11	(26)
Introduction	11	(1)
The theory of international production	12	(3)
The analytical framework	15	(19)
Summary and conclusions	34	(3)
A Cross-Sectional Test of the IDP	37	(16)
Introduction	37	(1)
The limitations of cross-sectional analysis	38	(4)
Testing the IDP	42	(2)
A comparison of the IDP in 1975 and 1988	44	(7)
Summary and conclusions	51	(2)
Natural and Created Assets as Determinants of FDI	53	(15)
Introduction	53	(1)
Data and propositions	54	(2)
Explanatory variables	56	(4)
Discussion of results	60	(5)
Summary and conclusions	65	(3)
Globalisation, Homogeneity Among Industrialised Countries and Differences in FDI Patterns	68	(27)
Introduction	68	(1)
The link between created assets, natural assets and FDI activity	69	(9)
Introspection within the Triad: general FDI trends	78	(14)
Summary and conclusions	92	(3)
Country-Specific Factors, Trade and FDI Patterns Over the 1980s	95	(45)
Introduction	95	(1)
Explaining the paradox	96	(3)
The relationship between FDI and trade	99	(2)
The analytical framework	101	(5)
The extent of specialisation of countries and firms	106	(16)
The stability of outward FDI, exports and technological advantage over the 1980s	122	(4)
The sectoral pattern of specialisation of firms and countries	126	(2)
FDI and exports: substitutes or complements?	128	(2)
Exports and FDI: the relationship to country-specific factors	130	(6)
Summary and conclusions	136	(4)
Transpacific FDI: A Forty-Year View of Changing Competitiveness	140	(37)
Introduction	140	(1)
Underlying differences in country-specific advantages	141	(2)
The evidence	143	(31)
Summary and conclusions	174	(3)
Summary, Conclusions and Policy Implications	177	(11)
Policy implications	183	(5)
Appendix 1	188	(1)
Appendix 2	189	(1)
Notes	190	(8)
Bibliography	198	(11)
Index	209