Multinational Companies and Indigenous Development: An Empirical Analysis

Eric Strobl () and Görg, Holger
Authors registered in the RePEc Author Service: Holger Görg

No 3325, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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 (1999) 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 companies; Firm entry; Host country development (search for similar items in EconPapers)
JEL-codes: F23 L60 (search for similar items in EconPapers)
Date: 2002-04
New Economics Papers: this item is included in nep-ent
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Citations: View citations in EconPapers (119)

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Chapter: Multinational companies and indigenous development: An empirical analysis (2016)
Journal Article: Multinational companies and indigenous development: An empirical analysis (2002)
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