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Export Platform FDI and Dualistic Development

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  • Frances Ruane
  • Ali Ugur

Abstract

There is increasing growth in export platform foreign direct investment (EPFDI) globally, reflecting both the international fragmentation of production associated with globalisation and the adoption of policies to promote this type of investment as part of the “export led growth” strategies of developing economies. This paper explores the relationship between multinational enterprises (MNEs) and local enterprises (LEs) over the longterm, using data on two of the world’s most active and persistent promoters of EPFDI, namely, Singapore and the Republic of Ireland. Our analysis finds evidence of a more dualistic relationship between MNEs and LEs in Ireland, as evidenced by the combination of relatively higher MNE and lower LE export ratios,and a greater and persistent disparity between MNE and LE labour productivities. In Singapore these differences are smaller and declining. We suggest that the contrast between the two countries reflects the greater success of Singapore in building globally competitive LEs and in creating linkages between MNEs and LEs.

Suggested Citation

  • Frances Ruane & Ali Ugur, 2005. "Export Platform FDI and Dualistic Development," The Institute for International Integration Studies Discussion Paper Series iiisdp028, IIIS.
    • Handle: RePEc:iis:dispap:iiisdp028
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    References listed on IDEAS

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