Multinational Corporations and Spillovers

Magnus Blomström () and Ari Kokko
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Magnus Blomström: Department of Economics, Postal: Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden

No 99, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: This paper examines spillover effects of the activities of multinational firms. Such effects are most likely to be found in host countries, where the operations of foreign multinationals may influence local firms in the MNCs own industry as well as firms in other industries. However, there is no comprehensive evidence on the exact nature or magnitude of these effects, although it is suggested that host country spillovers vary systematically between countries and industries. In particular, the positive effects of foreign investment are likely to increase with the level of local capability and competition. The spillovers to the home countries of MNCs are often more difficult to identify, for various reasons. Earlier studies suggest that the effects are generally positive, but the increasing international division of labor within multinationals complicates the analysis. The impact on the home country is likely to depend on what activities these firms concentrate at home.

Keywords: Multinational corporations; foreign investment; spillovers; technology transfer (search for similar items in EconPapers)
JEL-codes: F23 (search for similar items in EconPapers)
Pages: 49 pages
Date: 1996-02
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Citations: View citations in EconPapers (75)

Published in Journal of Economic Surveys, 1998, pages 247-277.

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Related works:
Chapter: Multinational Corporations and Spillovers (2000)
Journal Article: Multinational Corporations and Spillovers (1998)
Working Paper: Multinational Corporations and Spillovers (1996)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:hastef:0099

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