Multinational Firms and Manufactured Exports from Developing Countries

27 Pages Posted: 19 Jun 2004 Last revised: 18 May 2008

See all articles by Magnus Blomstrom

Magnus Blomstrom

Stockholm School of Economics - Department of Economics; National Bureau of Economic Research (NBER), at New York; Centre for Economic Policy Research (CEPR)

Irving B. Kravis

University of Pennsylvania - (Deceased)

Robert E. Lipsey

National Bureau of Economic Research (NBER) at New York (Deceased)

Date Written: 1988

Abstract

Multinational firms have played an important role in leading the developing countries into world markets. Multinationals from the United States, Japan and Sweden have all increased their shares of LDC exports of manufactures since the mid-1960s or mid-1970s. Their importance was particularly notable in Latin America, while their role in the Asian NICs decreased. The comparative advantages of U.S. and Swedish multinationals' affiliates in developing countries resembled those of their home countries more than those of their host countries, while Japanese affiliates' exports are lore similar to those of their host countries. There are some cases in which the advantage of the multinationals as exporters seems to be that they are able to combine company comparative advantages with the location advantages of producing in the developing countries.

Suggested Citation

Blomstrom, Magnus and Kravis, Irving B. and Lipsey, Robert E., Multinational Firms and Manufactured Exports from Developing Countries (1988). NBER Working Paper No. w2493. Available at SSRN: https://ssrn.com/abstract=314628

Magnus Blomstrom (Contact Author)

Stockholm School of Economics - Department of Economics ( email )

P.O. Box 6501
Sveavagen 65
S-113 83 Stockholm
Sweden
+46 8 736 9265 (Phone)
+46 8 342 818 (Fax)

National Bureau of Economic Research (NBER), at New York

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Centre for Economic Policy Research (CEPR)

London
United Kingdom

Irving B. Kravis

University of Pennsylvania - (Deceased)

N/A

Robert E. Lipsey

National Bureau of Economic Research (NBER) at New York (Deceased)

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