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Transnational corporations and the political economy of export promotion: the case of the Mexican automobile industry

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  • Bennett, Douglas
  • Sharpe, Kenneth E.

Abstract

Export promotion has replaced import substitution as the orthodox strategy for economic development. In sectors dominated by transnational corporations, however, such a strategy may run afoul of difficulties not immediately apparent from the neo-classical comparative-advantage perspective that has provided its principal theoretical support. Evidence from the Mexican automobile industry shows that an export promotion policy may face problems of a) demand rigidities in TNC intracompany transfers, b) decision dependency, c) difficulties in enforcing sanctions in cases of recalcitrance, and d) an unequal distribution of benefits between foreign-owned and domestically-owned firms.

Suggested Citation

  • Bennett, Douglas & Sharpe, Kenneth E., 1979. "Transnational corporations and the political economy of export promotion: the case of the Mexican automobile industry," International Organization, Cambridge University Press, vol. 33(2), pages 177-201, April.
    • Handle: RePEc:cup:intorg:v:33:y:1979:i:02:p:177-201_03
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    Cited by:

    1. Fischer, Bernhard & Herken-Krauer, Juan-Carlos & Lücke, Matthias & Nunnenkamp, Peter, 1988. "Capital-intensive industries in newly industrializing countries: the case of the Brazilian automobile and steel industries," Open Access Publications from Kiel Institute for the World Economy 411, Kiel Institute for the World Economy (IfW Kiel).
    2. Prema-chandra Athukorala, 2009. "Trends and Patterns of Foreign Direct Investments in Asia," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 3(4), pages 365-408, October.
    3. Ben Dankbaar, 1984. "Maturity and Relocation in the Car Industry," Development and Change, International Institute of Social Studies, vol. 15(2), pages 223-250, April.
    4. Phan, Tuan & Nguyen, Van Anh Thi, 2008. "Impacts of the Protection Policy for Vietnam’s Automobile Industry," MPRA Paper 54067, University Library of Munich, Germany, revised 01 Mar 2013.

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