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Multinationals and Industrialisation: The Bases of 'Inward Investment' Policy

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  • Robert Pearce

Abstract

The paper argues that policies towards inward investment should extend, much more decisively and comprehensively, beyond initial attraction in order to seek to secure sustained benefits from these operations. The view of the modern multinational enterprise as a dynamic differentiated network, operating through subsidiaries that have scope for evolution and development, provides a basis for the analysis of the potentials in this regard. The paper discusses in detail the content of particular phases in subsidiary transformation that can then provide a potential for embedding their operations in a host country in a creative and dynamic way that generates mutually supportive interdependencies in processes of resource (notably knowledge) generation and use.

Suggested Citation

  • Robert Pearce, 2001. "Multinationals and Industrialisation: The Bases of 'Inward Investment' Policy," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(1), pages 51-73.
    • Handle: RePEc:taf:ijecbs:v:8:y:2001:i:1:p:51-73
    DOI: 10.1080/13571510151075279
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    Cited by:

    1. Rajneesh Narula & André Pineli, 2017. "Multinational Enterprises and Economic Development in Host Countries: What We Know and What We Don’t Know," Palgrave Studies in Impact Finance, in: Gianluigi Giorgioni (ed.), Development Finance, chapter 6, pages 147-188, Palgrave Macmillan.
    2. repec:rdg:wpaper:em-dp2004-10 is not listed on IDEAS
    3. Pearce, Robert & Papanastassiou, Marina, 2006. "To 'almost see the world': Hierarchy and strategy in Hymer's view of the multinational," International Business Review, Elsevier, vol. 15(2), pages 151-165, April.
    4. Filippov, Sergey & Kalotay, Kalman, 2009. "Foreign Direct Investment in Times of Global Economic Crisis: Spotlight on New Europe," MERIT Working Papers 2009-021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Costa, Ionara & Filippov, Sergey, 2007. "A New Nexus Between Foreign Direct Investment, Industrial and Innovation Policies," MERIT Working Papers 2007-030, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Andrzej Cieślik & Jan Jakub Michałek & Krzysztof Szczygielski & Jacek Lewkowicz & Jerzy Mycielski, 2021. "Foreign Ownership and Within-MNEs GVC Participation as Determinants of Innovation Activities: A CIS-Based Firm-Level Analysis," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 13(2), pages 189-211, June.
    7. Robert Pearce, 2009. "Multinationals’ Strategies and the Economic Development of Small Economies: A Tale of Two Transitions," Management International Review, Springer, vol. 49(1), pages 81-94, February.

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