Trade, Location of Economic Activity and the MNE: A Search for an Eclectic Approach

Dunning, John H.

doi:10.1007/978-1-349-03196-2_38

Cited by 1,609 publications

(1,243 citation statements)

References 5 publications

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“…This, in turn, requires that jQ h j > 0; ¦ h;q h ;q h < 0 and ¦ h;x h ;x h < 0. I can show that this will hold if ®´< 2 since: Dunning (1977) and Markusen (1995).…”

Section: A3 Comparative Statics In Tablementioning

confidence: 97%

Multinational firms, technology and location

Norbäck

2001

Journal of International Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. whether this technology is to be used in a domestic or a in foreign plant and (iii) the quantity produced and sold on the market. If technology transfer costs are low, "high-tech" or R&D-intensive …rms tend to produce abroad. At higher technology transfer costs, high-tech …rms tend to export. An empirical analysis using a data set of Swedish multinational …rms, con…rms the latter prediction. Terms of use: Documents in EconStor may

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“…This, in turn, requires that jQ h j > 0; ¦ h;q h ;q h < 0 and ¦ h;x h ;x h < 0. I can show that this will hold if ®´< 2 since: Dunning (1977) and Markusen (1995).…”

Section: A3 Comparative Statics In Tablementioning

confidence: 97%

Multinational firms, technology and location

Norbäck

2001

Journal of International Economics

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“…This type of FDI is known as technology-exploiting FDI (Kuemmerle 1999;Le Bas and Sierra 2002). Most of the traditional literature on FDI refers to this type of investment (Hymer 1960;Dunning 1977;Markusen 2002).…”

Section: Motives For Fdimentioning

confidence: 99%

Collecting the Pieces of the FDI Knowledge Spillovers Puzzle

Smeets¹

2008

The World Bank Research Observer

237

145

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Recent surveys of the empirical literature have concluded that the evidence is mixed on the magnitude, direction, and even existence of knowledge spillovers from foreign direct investment (FDI). This article reviews the recent theoretical and empirical literature that responds to these inconclusive results and considers three main issues: spillover channels, mediating factors, and FDI heterogeneity. Studies that take into account individual spillover channels find robust evidence of knowledge spillovers from FDI. Studies on the importance of mediating factors and FDI heterogeneity are less conclusive and could benefit from greater convergence in methodologies and greater specificity in the spillover channels of interest. More generally, many studies do not properly distinguish between knowledge spillovers and knowledge transfers, and empirical studies seem to greatly outnumber theoretical studies. JEL codes: F23, O33In the face of difficulties associated with capturing spillover effects and the multitude of factors that can influence the extent of spillovers in each economy, we caution researchers about drawing generalized conclusions about the existence of externalities associated with [foreign direct investment] . . . . (Javorcik and Spatareanu 2005, 47) Over the past decade or so a large body of research has examined knowledge spillovers from foreign direct investment (FDI). At several points along the way scholars have paused to take stock of the evidence (Blomström and Kokko 1998;Saggi 2002;Görg and Greenaway 2004). The verdict has largely been inconclusive. Indeed, the empirical inconclusiveness has become so infamous that virtually every study reviewed here begins with this observation as its main motivation. Explanations for the lack of conclusive results have focused on methodological and measurement issues (Görg and Strobl 2001), but this sort of approach has recently been disputed (Lipsey and Sjöholm 2005 The literature has developed in several directions to account for the ambiguity in earlier work. This study reviews these contributions, both theoretical and empirical. To provide some structure in a rapidly expanding field and to identify which approach or combination of approaches is likely to yield the most promising results, the study is structured around three themes. 1 More insight into the conditions under which knowledge spillovers from FDI are most likely to arise is especially important for developing countries. The highly ambiguous evidence to date on the existence of knowledge spillovers from FDI does not seem to warrant the large sums of money spent by governments to attract FDI. 2 After setting the stage in the following section, the article is then structured around figure 1, a representation of the FDI knowledge spillover process and the pieces of the puzzle that may affect it. 3 The section on opening the black box of FDI knowledge spillovers discusses the research on vertical linkages, worker mobility, and demonstration effects. This is followed by a review of the evidence o...

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“…In a related work, and Wiedersheim-Paul et al (1978) are explicit in their emphasis of the importance of domestic operations for the internationalization process of firms, and state that internationalization starts at home. Also, researchers on the eclectic approach (Dunning, 1977(Dunning, , 1980(Dunning, , 1988, the transaction cost approach (Williamson, 1975) and the internalization theory (Buckley & Casson, 1976) emphasize the importance of domestic operations (Anderson & Gatignon, 1986;Beamish & Banks, 1987;Gatignon & Anderson, 1988). In these theories, a precondition for successful internationalization of firms is a firm-specific advantage.…”

Section: Hypothesesmentioning

confidence: 99%

Domestic Activity and Knowledge Development in the Internationalization Process of Firms

Blomstermo¹,

Eriksson

Sharma

2004

Journal of International Entrepreneurship

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This paper is based on behavioral theory on internationalization, examining the effect of firms operations in the domestic market on experiential knowledge development in the internationalization of the firm. Five hypotheses are developed on the effects of business operations in the domestic market on: internationalization knowledge, business knowledge and institutional knowledge. The LISREL analysis of 206 firms shows that domestic operations effect the accumulation of experiential knowledge in internationalizing firms. We found that it is harder for a firm with long domestic experience to change their mental models and processes in the internationalization process.

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Trade, Location of Economic Activity and the MNE: A Search for an Eclectic Approach

Cited by 1,609 publications

References 5 publications

Multinational firms, technology and location

Multinational firms, technology and location

Collecting the Pieces of the FDI Knowledge Spillovers Puzzle

Domestic Activity and Knowledge Development in the Internationalization Process of Firms

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