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The effects of multinationals on host economies: A CGE approach

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  • Muñoz , Maria C. Latorre
  • Rubio, Oscar Bajo
  • Gómez-Plana, Antonio Gómez

Abstract

The aim of this paper is analysing the effects on a host economy of the entry of multinational enterprises (MNEs). Our empirical methodology makes use of the computable general equilibrium (CGE) analysis, through an extension of the Global Trade Analysis Project (GTAP) model that includes MNEs. We have paid a special attention to a mostly neglected aspect of the impact of MNEs, namely, profit repatriation. The empirical analysis is applied to the case of the Czech Republic, a country that has received substantial inflows of foreign direct investment in the last few years.

Suggested Citation

  • Muñoz , Maria C. Latorre & Rubio, Oscar Bajo & Gómez-Plana, Antonio Gómez, 2007. "The effects of multinationals on host economies: A CGE approach," Conference papers 331664, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331664
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