scholarly journals Technology Diffusion and Trade Liberalization

2017 ◽  
Vol 17 (2) ◽  
Author(s):  
Hamid Beladi ◽  
Reza Oladi
Keyword(s):  
Trade Liberalization ◽  
Multinational Corporations ◽  
Technology Diffusion ◽  
Foreign Firms ◽  
Developing Economy ◽  
Policy Mix ◽  
Diffusion Of Technology ◽  
Representative Consumer ◽  
Trivial Equilibrium ◽  
Local Firms

AbstractWe consider a developing economy where multinational corporations compete with foreign and local firms in a monopolistically competitive market. The focus of our paper is on consequences of a policy mix of tariffs and foreign direct investment (FDI) tax in a developing economy. We assume all firms are technologically heterogeneous and that foreign firms are technologically superior to local firms. Central to our model is the assumption that FDI activities by multinational corporations would lead to diffusion of technology in the developing economy. We show the existence of a non-trivial equilibrium where most technologically advanced foreign firms emerge as multinationals, engage in FDI activities and this in turn leads to the diffusion of technology. We also show that trade liberalization without liberalization of foreign investment may lead to the protection of most technological backward local firms in the developing economy and such liberalization can reduce the welfare of a representative consumer.

scholarly journals Dampak Spillover Penanaman Modal Asing terhadap Produktivitas Industri Manufaktur Medium-High Technology di Indonesia

2020 ◽  
Vol 12 (1) ◽  
pp. 1-17
Author(s):  
Samuel Kharis Harianto ◽  
Dyah Wulan Sari
Keyword(s):  
Manufacturing Industry ◽  
High Technology ◽  
Foreign Firms ◽  
Investment Policies ◽  
Positive Spillover ◽  
Multiple Regression Method ◽  
Forward Linkage ◽  
The Impact ◽  
Domestic Companies ◽  
Local Firms

This study examines the impact of foreign presence in the Medium-High and High technology manufacturing industry in Indonesia. Using a balanced panel data that consists of 2,397 firms and in the year of 2010-2014, the data was estimated using the multiple regression method. The results show that there is positive spillover when local and foreign firms are in the same industry. Conversely, in different industries, negative spillover occurs in forward linkage when local firms buy the output of foreign firms and no spillover occurs in backward linkage when local firms become the suppliers of foreign firms. The Indonesian government must assure that foreign investment policies must benefit the domestic companies, considering there are some potential losses for domestic enterprises by the presence of foreign direct investment in the domestic market.

Multinational Corporations

2019 ◽  
pp. 460-479
Author(s):  
Leena Ajit Kaushal
Keyword(s):  
Multinational Corporations ◽  
Poverty Alleviation ◽  
Retail Sector ◽  
Developing Economy ◽  
Foreign Investors ◽  
Economic Framework

Foreign Investors are looking forward to enter organized retail sector, which has a mere 8 percent presence in India, but the present government in India which endorses liberal economic framework proscribe 100 percent FDI in multi-brand retail sector on the grounds of safeguarding small indigenous retailers known as ‘kirana stores'. The objective of the chapter is to explore the importance of Multi National Corporations (MNCs) not only in multi-brand retail sector but otherwise as a potent source of technology, efficiency and equality for farmers and poor, poverty alleviation and growth for a developing economy as a whole.

THE DYNAMICS OF TECHNOLOGY MANAGEMENT PRACTICES IN LOCAL FIRMS IN FOREIGN PARTNERSHIPS IN THE CONTEXT OF A LESS DEVELOPED ECONOMY

2012 ◽  
Vol 09 (05) ◽  
pp. 1250039
Author(s):  
DILUPA NAKANDALA ◽  
TIM TURPIN ◽  
TERRENCE SLOAN
Keyword(s):  
Technology Management ◽  
Multinational Corporations ◽  
Management Practices ◽  
Joint Venture ◽  
Developing Economies ◽  
Technological Development ◽  
Local Partner ◽  
Foreign Partner ◽  
Partner Firm ◽  
Local Firms

This paper investigates the technology management practices and the learning processes for the technological development of local firms in foreign partnerships. It initially notes that the existing literature is focused on the technological benefits to local firms in developing economies from multinational corporations rather than explaining the dynamics of the technology management practices used by local firms who engage in foreign partnerships. This paper also notes a gap in the current literature regarding the technology learning process during partnerships from the perspective of the local partner firms in developing economies. The structural analysis of the data from six case studies of joint venture partner firms in Sri Lanka shows that the technology management practices of local firms need to evolve strategically, based on the partnership characteristics, throughout the life of that partnership. It identifies that the level of skills and capabilities within the local firm, the organizational dominance of the foreign partner firm, clarity of roles in the partnership, and the potential technological contribution from the foreign partner firm are all significant determining factors affecting the choice of dynamic technology management practices by local partner firms.

scholarly journals The transportation and warehousing challenge for multinational corporations in China

2004 ◽  
Vol 15 (2) ◽  
pp. 45-61
Author(s):  
Garland Chow ◽  
Charles Guowen Wang
Keyword(s):  
Multinational Corporations ◽  
Service Sector ◽  
Value Added ◽  
Distribution Networks ◽  
Third Party ◽  
Foreign Firms ◽  
Distribution Centers ◽  
One Stop ◽  
Business In China ◽  
Warehousing And Distribution

Logistics is a major challenge for multinational corporations seeking to do business in China. Transportation and warehousing are two core activities of logistics which will have to be outsourced or produced internally by foreign firms entering the China market. This paper focuses on road and rail transportation, the primary forms of transport utilized to move finished goods, as well as the warehousing and distribution center service sector. Trucking services and costs are observed to be poor by Western standards. There is no established less-than-truckload (LTL) industry and there are limited trucking networks offering one stop shipping across the country. None the less, trucking will have to be the backbone of any distribution network in China for finished products. Rail service is even poorer. There are capacity constraints and finished goods movement is not a priority of the Chinese railways. Warehousing capacity inherited from state owned enterprises is inadequate, but new distribution centers are being built rapidly. Foreign firms need to recognize these limitations in service, capabilities and capacity in planning their distribution networks. The fragmented nature of both the trucking and warehousing sectors places a premium on the value added by third party logistics providers (3PL’s) who have the knowledge and the relationships with local trucking and warehouse firms to minimize the risk of a supply chain breakdown. The selection of logistics suppliers is the most critical logistics decision in the Chinese environment.

scholarly journals Foreign Firms and Indigenous Technology Development in the People's Republic of China

2013 ◽  
Vol 30 (2) ◽  
pp. 49-75 ◽  
Author(s):  
Fredrik Sjöholm ◽  
Nannan Lundin
Keyword(s):  
Multinational Firms ◽  
Technology Development ◽  
Manufacturing Sector ◽  
Foreign Firms ◽  
People’S Republic Of China ◽  
People's Republic Of China ◽  
Chinese Firms ◽  
Republic Of China ◽  
The Impact ◽  
Local Firms

The People's Republic of China (PRC) is currently promoting indigenous technology development through support of Chinese firms and, arguably, by restricting operations of foreign multinational firms. This policy seems to overlook the impact of foreign firms on technology development in local firms. For instance, technology might leak out to local firms though spillovers. Moreover, competition from foreign firms might force local firms to engage in technology development. We examine the impact of foreign direct investment (FDI) on technology development in the PRC. We start by surveying a large and growing literature on FDI and spillovers in the country. Most previous studies find evidence of positive spillovers. We then continue to examine the effect of FDI on competition in the Chinese manufacturing sector and the effect of competition on firms’ research and development (R&D). Our analysis is conducted on a large dataset including all large- and medium-sized Chinese firms over the period 1998–2004. Our results show that FDI increases competition but there are no strong indications of competition affecting investments in R&D.

Multinational Corporations

2016 ◽  
pp. 154-172
Author(s):  
Leena Ajit Kaushal
Keyword(s):  
Multinational Corporations ◽  
Poverty Alleviation ◽  
Retail Sector ◽  
Developing Economy ◽  
Foreign Investors ◽  
Economic Framework

Foreign Investors are looking forward to enter organized retail sector, which has a mere 8 percent presence in India, but the present government in India which endorses liberal economic framework proscribe 100 percent FDI in multi-brand retail sector on the grounds of safeguarding small indigenous retailers known as ‘kirana stores'. The objective of the chapter is to explore the importance of Multi National Corporations (MNCs) not only in multi-brand retail sector but otherwise as a potent source of technology, efficiency and equality for farmers and poor, poverty alleviation and growth for a developing economy as a whole.

Political Attitudes and Behavior among ILWU Members

2013 ◽  
Author(s):  
Amanda B. Clayton
Keyword(s):  
International Trade ◽  
Trade Liberalization ◽  
Multinational Corporations ◽  
Political Attitudes ◽  
Trade Restrictions ◽  
Poor Countries ◽  
Original Survey ◽  
And Behavior ◽  
Attitudes And Behavior ◽  
Political Opinions

This chapter illustrates an original survey of rank-and-file International Longshore and Warehouse Union (ILWU) members. It begins with a specific puzzle: though ILWU members clearly have benefited from increased international trade, the union has maintained a consistent stance opposing trade liberalization for several decades. Interviews with ILWU leaders show that the union's stance appears to be sincere, based on the belief that current international trade rules unfairly benefit multinational corporations while imposing costs on the workers and the environment in both rich and poor countries. The chapter finds that ILWU members are more likely to have strong political opinions; they are more likely to support trade restrictions; and they are more likely to engage in politics, including turning out to vote, protest, and donate to political causes.

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