Multinational firms and backward linkages : a critical survey and a simple model
Document Type
Book chapter
Source Publication
Does foreign direct investment promote development?
Publication Date
1-1-2005
First Page
159
Last Page
174
Publisher
Center for global development, Institute for International Economics
Abstract
In this chapter, we develop a simple model that explores FDI's effect on backward linkages and that accommodates both of these preceding views. The model considers the effects of a multinational's entry that enjoys market power and also transfers technology to the local economy. We also provide a detailed discussion of the existing analytical work on FDI and backward linkages in order to highlight the contribution made by our model and to indicate avenues for future research.
Publisher Statement
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Additional Information
ISBN of the source publication: 9780881323818
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Lin, P. (2005). Multinational firms and backward linkages: A critical survey and a simple model. In T. H. Moran, E. M. Graham, & M. Blomström (Eds.), Does foreign direct investment promote development? (pp. 159-174). Washington, DC: Center for global development, Institute for International Economics.