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Multinational firms and the extractive sectors in the 21st century: Can they drive development?

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  • Narula, Rajneesh

Abstract

Historically, extractive sector MNEs have been seen as an obstacle to sustainable development, because they operated in enclaves with limited local engagement. Import-substitution policies aimed to increase the local benefits of these resources, restricting FDI. Since liberalisation, extractive MNEs have re-engaged with developing countries through looser governance structures with greater potential for linkages. Despite the increased potential, few host countries have seen meaningful MNE-led development because of weak domestic firms and poor location advantages. New MNEs from emerging economies have also not shown a greater propensity to local linkages. Only countries that have continued to invest in location advantages have seen substantial benefits.

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  • Narula, Rajneesh, 2018. "Multinational firms and the extractive sectors in the 21st century: Can they drive development?," Journal of World Business, Elsevier, vol. 53(1), pages 85-91.
    • Handle: RePEc:eee:worbus:v:53:y:2018:i:1:p:85-91
    DOI: 10.1016/j.jwb.2017.09.004
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    14. Leonidou, Leonidas C. & Theodosiou, Marios & Nilssen, Frode & Eteokleous, Pantelitsa & Voskou, Angeliki, 2024. "Evaluating MNEs’ role in implementing the UN Sustainable Development Goals: The importance of innovative partnerships," International Business Review, Elsevier, vol. 33(3).
    15. Funk, Charles & Treviño, Len J. & Oriaifo, Juliet, 2021. "Resource curse impacts on the co-evolution of emerging economy institutions and firm internationalization," International Business Review, Elsevier, vol. 30(4).
    16. Khorana, Sangeeta & Escaith, Hubert & Ali, Salamat & Kumari, Sushma & Do, Quynh, 2022. "The changing contours of global value chains post-COVID: Evidence from the Commonwealth," Journal of Business Research, Elsevier, vol. 153(C), pages 75-86.
    17. Dau, Luis Alfonso & Moore, Elizabeth M. & Kostova, Tatiana, 2020. "The impact of market based institutional reforms on firm strategy and performance: Review and extension," Journal of World Business, Elsevier, vol. 55(4).
    18. Juan Sebastián Lara‐Rodríguez & Morgane M. C. Fritz, 2023. "How does eliminating mercury from artisanal and small‐scale gold mining lead to achieving sustainable development goals?," Natural Resources Forum, Blackwell Publishing, vol. 47(2), pages 214-228, May.
    19. Fragkiskos Filippaios & Fatima Annan-Diab & Amir Hermidas & Charikleia Theodoraki, 2019. "Political governance, civil liberties, and human capital: Evaluating their effect on foreign direct investment in emerging and developing economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(7), pages 1103-1129, September.
    20. Shameen Prashantham & Julian Birkinshaw, 2020. "MNE–SME cooperation: An integrative framework," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(7), pages 1161-1175, September.
    21. Shi, Junguo & Liu, Yang & Sadowski, Bert M. & Alemzero, David & Dou, Shanshan & Sun, Huaping & Naseem, Sobia, 2023. "The role of economic growth and governance on mineral rents in main critical minerals countries," Resources Policy, Elsevier, vol. 83(C).
    22. Ru-Shiun Liou & Rekha Rao-Nicholson, 2021. "Multinational enterprises and Sustainable Development Goals: A foreign subsidiary perspective on tackling wicked problems," Journal of International Business Policy, Palgrave Macmillan, vol. 4(1), pages 136-151, March.
    23. Runhui Lin & Yuan Gui & Zaiyang Xie & Lu Liu, 2019. "Green Governance and International Business Strategies of Emerging Economies’ Multinational Enterprises: A Multiple-Case Study of Chinese Firms in Pollution-Intensive Industries," Sustainability, MDPI, vol. 11(4), pages 1-32, February.
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    More about this item

    Keywords

    Sustainable development; MNEs; Linkages; Emerging economies; Extractives; Natural resources; Infrastructure;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • F54 - International Economics - - International Relations, National Security, and International Political Economy - - - Colonialism; Imperialism; Postcolonialism
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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