Working Paper: NBER ID: w2493
Authors: Magnus Blomström; Irving B. Kravis; Robert E. Lipsey
Abstract: Multinational firms have played an important role in leading the developing countries into world markets. Multinationals from the United States, Japan and Sweden have all increased their shares of LDC exports of manufactures since the mid-1960s or mid-1970s. Their importance was particularly notable in Latin America, while their role in the Asian NICs decreased. The comparative advantages of U.S. and Swedish multinationals' affiliates in developing countries resembled those of their home countries more than those of their host countries, while Japanese affiliates' exports are lore similar to those of their host countries. There are some cases in which the advantage of the multinationals as exporters seems to be that they are able to combine company comparative advantages with the location advantages of producing in the developing countries.
Keywords: Multinational Firms; Manufactured Exports; Developing Countries; Foreign Direct Investment
JEL Codes: F23; F14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| U.S. multinationals (F23) | manufactured exports from developing countries (O14) |
| Japanese multinationals (F23) | manufactured exports from developing countries (O14) |
| multinational firm presence (F23) | export performance (F17) |
| firm characteristics (L20) | export outcomes (P47) |
| multinational activities (F23) | concentration in fast-growing sectors (O29) |