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book cover Multinational Firms in the World Economy

Giorgio Barba Navaretti and Anthony J. Venables
With Frank G. Barry, Karolina Ekholm, Anna M. Falzoni, Jan I. Haaland, Karen Helene Midelfart, and Alessandro Turrini

Download Chapter 1 in Adobe PDF format [pdf]


Chapter 1: Facts and Issues
1.1 Multinationals: What Are They and How Are They Measured?
1.2 The Facts: Empirical Overview
1.3 The Issues
1.4 Guide to the Book
Statistical Appendix


Chapter 2: The Multinational Enterprise: an Overview of Theory and Empirical Findings
2.1 National and International Production
2.2 Internalization and the Boundary of the Firm
2.3 Effects of FDI
2.4 Conclusions


Chapter 3: Horizontal Foreign Direct Investment: Product Market Access
3.1 A Model
3.2 National versus Multinational Supply
3.3 Demand and Firm Behaviour
3.4 The Effect of FDI on the Host Economy
3.5 Extensions
3.6 Conclusions
Appendix 3.1. Parameters Underlying Figures
Appendix 3.2. Section 3.5.1


Chapter 4: Vertical Foreign Direct Investment: Input Costs and Factor Prices
4.1 Cost-Minimizing Locations
4.2 Fragmentation and Factor Prices
4.3 Fragmentation in General Equilibrium
4.4 Factor Price Convergence?
4.5 Conclusions
Appendix 4.1. Parameter Values in Figures 4.1 and 4.2
Appendix 4.2. Parameter Values in Figure 4.6
Appendix 4.3. Components Labour Intensive


Chapter 5: Multinationals: the Firm and the Market
5.1 An Analytical Framework
5.2 Hold-up
5.3 Hold-up in Industry Equilibrium
5.4 Dissipation of Intangible Assets
5.5 Agency Costs
5.6 Conclusions
Appendix


Chapter 6: Determinants of FDI: the Evidence
6.1 A General Framework
6.2 Industry and Firm Determinants of FDI
6.3 Country Determinants of FDI
6.4 The Relative Importance of Horizontal versus Vertical FDI
6.5 Other Factors Affecting the Location of FDI
6.6 Concluding Remarks


Chapter 7: Host Country Effects: Conceptual Framework and the Evidence
7.1 Aggregate Effects of FDI on Economic Growth: Cross-Country Evidence
7.2 Firm Effects: Conceptual Framework
7.3 Productivity
7.4 Factor Markets
7.5 Employment Volatility
7.6 Multinationals and Local Firms
7.7 Conclusions
Appendix


Chapter 8: FDI and the Host Economy: a Case Study of Ireland
8.1 Ireland's Success in Attracting FDI
8.2 Characteristics of FDI Inflows to Ireland
8.3 FDI and the Development of the Irish Economy
8.4 Concluding Comments


Chapter 9: Home Country Effects of Foreign Direct Investment
9.1 What are the Effects? Setting the Issues
9.2 Foreign Production and Domestic Activities: Substitutes or Complements?
9.3 Skill Intensity
9.4 Technological Sourcing
9.5 Effects on Productivity: Comparing MNEs and National Firms
9.6 Conclusions
Appendix. Derivation of Empirically Testable Demands for Relatively Skilled Labour


Chapter 10: Policy Implications and Effects
10.1 The Impact of FDI on Economic Policy
10.2 FDI Incentives
10.3 Policy Competition and Policy Coordination
10.4 International Governance of Investment Regimes
10.5 Concluding Remarks


Chapter 11: Conclusions
Appendix A Statistical Definitions and Databases on Foreign Direct Investment and the Activities of Multinationals
A.1 International Statistics on Foreign Direct Investment
A.2 Financial and Operating Data on Multinational Firms
Glossary
References
Index


For further information please contact Helen Durrant, Publications Administrator, CEP, Tel: +44 (0)20 7955 7395, Email: h.durrant@lse.ac.uk