Title

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

Access to external full text or publisher's version may require subscription.

Additional Information

ISBN of the source publication: 9780881323818

Full-text Version

Publisher’s Version

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.