Improving the Developmental Impact of Multinational Enterprises:Policy and Research challenges
Rajneesh Narula and
André Pineli
Additional contact information
André Pineli: Henley Business School, University of Reading
John H Dunning Centre for International Business Discussion Papers from Henley Business School, University of Reading
Abstract:
We summarize the key empirical evidence on the nexus between MNEs and development, focusing on issues that are relevant for the formulation, implementation and assessment of policies by host developing countries. We also delve into what we do not know, as well as topics for which the evidence is still quite blurred. We discuss the reasons for the absence of clear evidence, and potential avenues for future research to improve policies. Although most countries rely on MNEs/FDI as a central plank of their development strategy, the collective weight of academic research has not led to a fine-tuning of policy implementation. Countries still rely on policies for which evidence is sparse, or no longer valid in an era of globalisation. Much of the literature has focused on externalities and spillovers, and has deemphasised the other 'effects' of MNE activity, implicitly assuming that MNEs are almost always beneficial for development. Few rents are costless when the opportunity costs of scarce resources are considered, especially in the longer term. Despite the abundance of empirical studies (of increasing sophistication), most ignore the significance of structural change. Growth and the interaction with MNE activity is not linear or monotonic over time, because the economy itself is in a constant state of flux.
Keywords: multinational enterprises; economic development; developing countries; GDP growth; spillovers; public policy (search for similar items in EconPapers)
JEL-codes: D62 F23 O14 O19 O24 (search for similar items in EconPapers)
Date: 2018-09
New Economics Papers: this item is included in nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (3)
Downloads: (external link)
https://assets.henley.ac.uk/defaultUploads/PDFs/re ... 444059195.1517222693 (application/pdf)
Related works:
Journal Article: Improving the developmental impact of multinational enterprises: policy and research challenges (2019)
Working Paper: Improving the developmental impact of multinational enterprises: Policy and research challenges (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:rdg:jhdxdp:jhd-dp2018-08
Access Statistics for this paper
More papers in John H Dunning Centre for International Business Discussion Papers from Henley Business School, University of Reading Contact information at EDIRC.
Bibliographic data for series maintained by Marie Pearson (marie.pearson@henley.ac.uk).