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ResearchPaper
2004

Spatial decisions of multinational enterprises and their effect on local firms

Institut fĂĽr Volkswirtschaftslehre (bis 2010)

Abstract (English)

Since the 1980s empirical research has been conducted on the influence of MNEs on local firms. The spillovers predicted by growth theory models used in the research designs have not been found. The main result is the importance of increased competition for the productivity of local firms. When FDI flows expanded rapidly in the 1990s, it became clear that MNEs play an important role in international technology transfer. However, growth theory models are limited in that market structures and firms cannot be modeled explicitly. The New Economic Geography (NEG) is better equipped to handle these issues. Instead of spillovers it relies on linkages. Therefore, new insights might be gained by basing empirical research on a NEG model and looking for linkages among firms.

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Schriftenreihe des Promotionsschwerpunkts Globalisierung und Beschäftigung; 20

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Faculty of Business, Economics and Social Sciences
Institute
Institut fĂĽr Volkswirtschaftslehre (bis 2010)

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Language
English

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330 Economics

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BibTeX

@techreport{Ehnts2004, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/5337}, author = {Ehnts, Dirk}, title = {Spatial decisions of multinational enterprises and their effect on local firms}, year = {2004}, school = {Universität Hohenheim}, series = {Schriftenreihe des Promotionsschwerpunkts Globalisierung und Beschäftigung}, }