Firm-Specific Assets and the Gains from Direct Foreign Investment

Dados Bibliográficos

ID9727062
AutoresIgnatius J Horstmann, James R Markusen (0000-0003-4839-6350)
Ano1989
Volume56
Fascículo221
Páginas41
Data de publicação1989-02-01
Peer ReviewedSim
Open AccessNão
TipoARTICLE
PeriódicoEconomica (JOURNAL)
Identificadores do periódicoISSN: 0013-0427 • E-ISSN: 1468-0335
EditoraJSTOR (PUBLISHER)
DOI10.2307/2554493
OpenAlexW1983845699
IdiomaEN
Citações recebidas9
Referências citadas5

It is widely held that multinational enterprises arise as a consequence of the existence of knowledge-based, firm-specific assets such as superior technology or management know-how. These assets are much like public goods within the firm in that they can be costlessly supplied to additional plants, thus leading to the efficiency of multiplant production. Foreign direct investment then consists of supplying the services of the assets to foreign operations and repatriated earnings are payments for these services. These notions are formalized in a simple model of the multinational enterprise and welfare implications are analyzed. Copyright 1989 by The London School of Economics and Political Science

Business · Economics · Foreign direct investment · Macroeconomics · Monetary economics · Economic Policies and Impacts · Global Financial Crisis and Policies · Global trade and economics