The economic analysis of multinationals and foreign direct investment: a review

• Autores: María Concepción Latorre Muñoz
• Localización: Hacienda Pública Española / Review of Public Economics, ISSN 0210-1173, Nº 191, 2009, págs. 97-126
• Idioma: inglés
• Enlaces
  • Texto completo (pdf)
• Dialnet Métricas: 2 Citas
• Resumen

  • This article provides an up-to-date, comprehensive synthesis and evaluation of the existing literature on multinational firms and foreign direct investment. Unlike most previous reviews it combines several insights showing their inconsistencies and complementarities. Through a chronological description it presents the main strands since the earliest perfect competition studies from the 1960s till some new recent contributions such as the knowledge-capital model, heterogeneous firms models, and internalisation issues. The paper also offers a new perspective, by reviewing the available computable general equilibrium models that include multinationals and foreign direct investment.

• Referencias bibliográficas
  • Agarwal, J. P. (1980), "Determinants of foreign direct investment: A survey", Weltwirtschaftliches Archiv, 116, 739-773.
  • Antra`s, P. (2003), "Firms, contracts, and trade structure", Quarterly Journal of Economics, 118, 1375-1418.
  • Antra`s, P. (2005), "Incomplete contracts and the product cycle" American Economic Review, 95, 1054-1073.
  • Antra`s, P. and Helpman, E. (2004), "Global sourcing", Journal of Political Economy, 112, 552-580.
  • Antra`s, P. and Helpman, E (2008), "Contractual frictions and global sourcing", forthcoming in Helpman, E., Marin, D. and Verdier,...
  • Antra`s, P. and RossiHansberg, E. (2008), "Organizations and trade", Working Paper No. 14262, National Bureau of Economic Research.
  • Aw, B. Y. and Lee, Y. (2008), "Firm heterogeneity and location choice of Taiwanese multinationals", Journal of International Economics,...
  • BajoRubio, O. (1991), Teori´as del comercio internacional, Barcelona: Antoni Bosch.
  • Baldwin, R. E. and Martin, P. (1999), "Two waves of globalisation: Superficial similarities, fundamental differences", in Siebert,...
  • Barba Navaretti, G. and Venables, A. J. (2004), Multinational firms in the world economy, Princeton: Princeton University Press.
  • Bchir, H., Decreux, Y., Gue´rin, J.L. and Jean, S. (2002), "MIRAGE, a computable general equilibrium model for trade policy analysis",...
  • Bernard, A. B., Jensen, B. J., Redding, S. J. and Schott, P. K. (2007a), "Firms in international trade" Journal of Economic Perspectives,...
  • Bernard, A. B., Redding, S. J. and Schott, P. K. (2007b), "Comparative advantage and heterogeneous firms" Review of Economic Studies,...
  • Bernard, A. B., Eaton, J., Bradford J., and Kortum, S. S. (2003), "Plants and productivity in international trade", American Economic...
  • Blomstro¨m, M. and Kokko, A. (1997), "How foreign investment affects host countries", Policy Research Working Paper No. 1745, The...
  • Blonigen, B. A., Davies, R. B. and Head, K. (2003), "Estimating the knowledgecapital model of the multinational enterprise: Comment",...
  • Brainard, S. L. (1993), "A simple theory of multinational corporations and trade with a tradeoff between proximity and concentration",...
  • Brainard, S. L. (1997), "An empirical assessment of the proximityconcentration tradeoff between multinational sales and trade", American...
  • Brown, D. and Stern, R. (2001), "Measurement and modeling of the economic effects of trade and investment barriers in services," Review...
  • Burfisher, M. E., Robinson, S. and Thierfelder, K. (2001),"The Impact of NAFTA on the United States", Journal of Economic Perspectives,...
  • Carr, D. J., Markusen, J. R. and Maskus, K. (2001), "Estimating the knowledge capital model of the multinational enterprise", American...
  • Carr, D. J., Markusen, J. R. and Maskus, K. (2003), "Estimating the knowledgecapital model of the multinational enterprise: Reply",...
  • Caves, R. E. (2007), Multinational enterprise and economic analysis (3rd edition), Cambridge: Cambridge University Press.
  • Coase, R. H. (1937), "The nature of the firm", Economica, 4, 386-405.
  • Dawkins, C., Srinivasan, T. N. and Whalley, J. (2001), "Calibration", in Heckman J. J. and Leamer, E. (eds.), Handbook of Econometrics,...
  • Devarajan, S. and Robinson, S. (2005), "The Influence of computable general equilibrium models on policy", in Kehoe, T. J., Srinivasan,...
  • Dunning, J. H. (1977), "Trade, location of economic activity and the MNE: A search for an eclectic approach", in Ohlin, B., Hesselborn,...
  • Dunning, J. H. (1979), "Explaining changing patterns of international production: In defence of the eclectic theory", Oxford Bulletin...
  • Dunning, J. H. (1981), "Explaining the international direct investment position of countries: Towards a dynamic or developmental approach",...
  • Dunning, J. H. (2000), "The eclectic paradigm as an envelope for economic and business theories of MNE activity", International Business...
  • Dunning, J. H. and Narula, R. (1996), "The investment development path revisited: Some emerging issues", in Dunning, J. H. and Narula,...
  • Ekholm, K., Forslid, R. and Markusen, J.R. (2007), "ExportPlatform foreign firect investment", Journal of the European Economic Association,...
  • Ethier, W. (1986), "The multinational firm", Quarterly Journal of Economics, 101, 805-833.
  • Ethier, W. and Markusen, J. R. (1996), "Multinational firms, technology diffusion and trade", Journal of International Economics,...
  • Feenstra, R. C. (2004), "Multinationals and organization of the firm", in Feenstra, R. Advanced international trade: Theory and evidence,...
  • Go´mezPlana, A. G. (2005), "Simulacio´n de poli´ticas econo´micas: Los modelos de equilibrio general aplicado", Cuadernos Econo´micos...
  • Graham, E. W. (1992), "Los determinantes de la inversio´n extranjera: Teori´as alternativas y evidencia internacional", Moneda y Cre´dito,...
  • Greenaway, D. and Kneller, R. (2007), "Firm heterogeneity, exporting and foreign direct investment", Economic Journal, 117, 134-161.
  • Grossman, S. J., and Hart, O. D. (1986), "The costs and benefits of ownership: A theory of vertical and lateral integration", Journal...
  • Grossman, G. M. and Helpman, E. (2002), "Integration vs. outsourcing in industry equilibrium", Quarterly Journal of Economics, 117,...
  • Grossman, G., Helpman, E. and Szeidl, A. (2006), "Optimal integration strategies for the multinational firm", Journal of International...
  • Hanslow, K., Phamduc, T. and Verikios, G. (1999), The Structure of the FTAP Model, Research Memorandum MC58, Productivity Commission, Canberra.
  • Hanson, G., Malatoni, R. and Slaughter, M. (2005), "Vertical production networks in multinational firms", Review of Economics and...
  • Helpman, E. (1981), "International trade in the presence of product differentiation, economies of scale, and monopolistic competition:...
  • Helpman, E. (1984), "A simple theory of international trade with multinational corporations", Journal or Political Economy, 92, 451-471.
  • Helpman, E. (2006), "Trade, FDI, and the organization of firms", Journal of Economic Literature, 44, 589-630.
  • Helpman, E., Melitz, M. J. and Yeaple, S. R. (2004), "Exports versus FDI with heterogeneous firms", American Economic Review, 94,...
  • Helpman, E, Melitz, M. and Rubinstein, Y. (2007), "Estimating trade flows: trading partners and trading volumes", Working Paper No....
  • Hertel, T. W. (ed.) (1997), Global trade analysis. Modelling and applications, Cambridge: Cambridge University Press.
  • Hertel, T. W., Hummels, D. L., Ivanic, M., Keeney, R. (2007), "How confident can we be of CGEbased assessments of Free Trade Agreements?",...
  • Hirsch, S. (1976), "An international trade and investment theory of the firm", Oxford Economic Papers, 28, 258-270.
  • Hymer, S. H. (1976), The international operations of national firms: A study of direct foreign investment, Cambridge, MA: The MIT Press.
  • Jensen, J., Rutherford, T. and Tarr, D. (2007), "The impact of liberalizing barriers to foreign direct investment in services: The case...
  • Jones, R. W. (1971), "A threefactor model in theory, trade and history", in Bhagwati, J. N., Jones, R.W., Mundell, R. A. and Vanek,...
  • Jorgenson, D. (1984), "Econometric methods for applied general equilibrium analysis", in Scarf, H. E. and Shoven, J. B. (eds.) Applied...
  • Kehoe, T. J. (2005), "An evaluation of the performance of applied general equilibriummodels on the impact of NAFTA", in Kehoe, T....
  • Kehoe, T. J., Polo, C. and Sancho, F. (1995), "An Evaluation of the Performance of an Applied General Equilibrium Model of the Spanish...
  • Krugman, P. (1979), "Increasing returns, monopolistic competition, and international trade", Journal of International Economics, 9,...
  • Krugman, P. (1980), "Scale economies, product differentiation, and the pattern of trade", American Economic Review, 70, 950-959.
  • Krugman, P. (1995), "Increasing returns, imperfect competition and the positive theory of international trade", in Grossman, G. and...
  • Latorre, M. C. (2004), "Nota cri´tica: Modelos de comercio que incorporan multinacionales: ¿Es posible? Una visio´n de las aportaciones...
  • Latorre, M. C., BajoRubio, O. and Go´mezPlana, A. G. (2009), "The effects of multinationals on host economies: A CGE approach", Economic...
  • Lipsey, R. E. (2002), "Home and host country effects of FDI", Working Paper No. 9293, National Bureau of Economic Research.
  • MacDougall, G. D. A. (1960), "The benefits and costs of private investment from abroad: A theoretical approach", Economic Record,...
  • Markusen, J. R. (1984), "Multinational, multiplant economies, and the gains from trade", Journal of International Economics, 16, 205-226.
  • Markusen, J. R. (1995), "The boundaries of multinational enterprises and the theory of international trade", Journal of Economic Perspectives,...
  • Markusen, J. R. (1997), "Trade versus investment liberalisation", Working Paper No. 6231, National Bureau of Economic Research.
  • Markusen, J. R. (2002), Multinational Firms and the Theory of International Trade, The MIT Press, Cambridge, MA.
  • Markusen, J. R. and Venables, A. J. (1998), "Multinational firms and the new trade theory", Journal of International Economics, 46,...
  • Markusen, J. R. and Venables, A. J. (2000), "The theory of endowment, intraindustry trade and multinational trade", Journal of International...
  • Markusen, J. R., Rutherford, T. and Tarr, D. (2005), "Trade and direct investment in producer services and the domestic market for expertise",...
  • McKitrick, R. R. (1998), "The econometric critique of computable general equilibrium modeling: The role of functional forms", Economic...
  • McLaren, J. (2000), "Globalization and vertical structure", American Economic Review, 90, 1239-1254.
  • Melitz, M. J. (2003), "The impact of trade on intraindustry reallocations and aggregate industry productivity", Econometrica, 71,...
  • Mundell, R. A. (1957), "International trade and factor mobility", American Economic Review, 47, 321-335.
  • Neary, J. P. (1978), "Shortrun capital specificity and the pure theory of international trade", Economic Journal, 88, 488-510.
  • Nocke, V. and Yeaple, S. (2007), "Crossborder mergers and acquisitions vs. greenfield foreign direct investment: The role of firm heterogeneity",...
  • OECD (2007), "Measuring globalisation. Activities of multinationals", Paris, available at: http:// http://www.oecd.org/document/37/0,3343,en_2649_34443_38763813_1_1_1_1,00.html#vol1
  • Petri, P. A. (1997), "Foreign direct investment in a computable general equilibrium framework", paper presented at the BrandeisKeio...
  • Rauch, J. E. and Trindade, V. (2003), "Information, international substitutability and globalisation", American Economic Review, 93,...
  • Rutherford, T. F. and Tarr, D. G. (2008), "Poverty effects of Russia's WTO accession: Modeling "real" households with endogenous...
  • SannaRandaccio, F. and Veugelers, R. (2003), "Global innovation strategies of MNEs: Implications for host economies", in Cantwell,...
  • SannaRandaccio, F. and Veugelers, R. (2007), "Multinational knowledge spillovers with decentralised R&D: A game theoretic approach",...
  • Scarf, H. E. and Shoven, J. B. (eds.) (1984), Applied general equilibrium analysis, Cambridge: Cambridge University Press.
  • Shoven, J. B. and Whalley, J. (1984), "Applied generalequilibrium models of taxation and international trade: An introduction and survey",...
  • Shoven, J. B. and Whalley, J. (1992), Applying General Equilibrium, Cambridge: Cambridge University Press.
  • Smarzynska, B. (2004), "Does foreign direct investment increase the productivity of domestic firms? In search of spillovers through backward...
  • UNCTAD (several years), World Investment Report, United Nations, New York and Geneva
  • Verikios, G. and Zhang, XG. (2001a), "The FTAP2 model: Theory and data", Research Memorandum MC61, Productivity Commission, Canberra.
  • Verikios, G. and Zhang, XG. (2001b), "Global gains from liberalising trade in telecommunications and financial services", Productivity...
  • Vernon, R. (1966), "International investment and international trade in the product cycle", Quarterly Journal of Economics, 80, 190-207.
  • Williamson, O. E. (1975), "Markets, Hierarchies: Analysis, Antitrust Implications", New York: Free Press.
  • Williamson, O. E. (1985), "The Economic Institutions of Capitalism", New York: Free Press, Chapters 13.
  • Yeaple, S. (2003a), "The role of skill endowments in the structure of U.S outward FDI", Review of Economics and Statistics, 85, 726-734.
  • Yeaple, S. (2003b), "The complex integration strategies of multinationals and cross country dependencies in the structure of FDI"...
  • Zhai, F. (2008), "Armington meets Melitz: Introducing firm heterogeneity in a global CGE model of trade", Journal of Economic Integration,...
  • Zhang, K. H. and Markusen, J. R. (1999), "Vertical multinationals and hostcountry characteristics", Journal of Development Economics,...