Multinational companies and indigenous development: An empirical analysis

Holger Görg and Eric Strobl ()

Chapter 17 in Multinational Enterprises and Host Country Development, 2016, pp 305-322 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This paper presents an empirical study of the effect of foreign multinational companies on the development of indigenous firms in the host country. Our starting point is a recent paper by Markusen and Venables (European Economic Review 43 (1999) 335–356) that shows formally that multinationals, through the creation of linkages with indigenous suppliers, can exert positive effects on the development of indigenous firms. Based on the literature on entry in industrial organisation, we estimate empirically a model describing the entry of indigenous firms using data for the Irish manufacturing sector. Our results indicate that there is a positive effect of multinational companies on the entry of indigenous firms for a variety of alternative specifications.

Keywords: Multinational Enterprises; Foreign Direct Investment; Spillovers; Development; Host Country (search for similar items in EconPapers)
Date: 2016
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Related works:
Journal Article: Multinational companies and indigenous development: An empirical analysis (2002)
Working Paper: Multinational Companies and Indigenous Development: An Empirical Analysis (2002)
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