Globalization and Intra-Firm Trade:Further Evidence

Kiichiro Fukasaku and Fukunari Kimura

Chapter 13 in Frontiers of Research in Intra-Industry Trade, 2002, pp 237-272 from Palgrave Macmillan

Abstract: Abstract Multinational enterprises (MNEs) are integrating agents in the world economy by putting the labour, capital and technology available in different countries to most productive use. According to the United Nations’ World Investment Report 2000 (United Nations, 2000), over 63 000 parent companies world-wide have established about 690 000 foreign affiliates in countries other than their own, with the amount of inward FDI stock valued at roughly US$4800 billion in 1999. These foreign affiliates are estimated to have generated total gross product of more than US$3000 billion and total employment of over 40 million in host countries. While about 90 per cent of all parent companies are located in OECD countries, more than half of all foreign affiliates are in operation in non-OECD countries, providing a major source of industrial production and employment in a number of developing host countries.1 MNEs are also significant — and often dominant — players in international trade by extending business networks overseas through direct investment, and providing markets for related parties beyond national boundaries. For example, in the USA, where most consistent trade data by ownership is available, about three-quarters of merchandise exports and 70 per cent of merchandise imports in 1997 were associated with either US-owned or foreign-owned MNEs and their foreign affiliates.2

Keywords: Foreign Direct Investment; Parent Company; Parent Firm; Outward Foreign Direct Investment; Foreign Affiliate (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (6)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:pal:palchp:978-0-230-28598-9_13

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230285989

DOI: 10.1057/9780230285989_13

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().