Firm-Specific Assets and the Gains from Direct Foreign Investment

Datos Bibliográficos

ID9727062
AutoresIgnatius J Horstmann, James R Markusen (0000-0003-4839-6350)
Año1989
Volumen56
Número221
Páginas41
Fecha de publicación1989-02-01
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaEconomica (JOURNAL)
Identificadores de la revistaISSN: 0013-0427 • E-ISSN: 1468-0335
EditorialJSTOR (PUBLISHER)
DOI10.2307/2554493
OpenAlexW1983845699
IdiomaEN
Citas recibidas9
Referencias 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