Abstract
In this chapter, we develop a simple model that explores FDI's effect on backward linkages and that accommodates both of these preceding views. The model considers the effects of a multinational's entry that enjoys market power and also transfers technology to the local economy. We also provide a detailed discussion of the existing analytical work on FDI and backward linkages in order to highlight the contribution made by our model and to indicate avenues for future research.
| Original language | English |
|---|---|
| Title of host publication | Does foreign direct investment promote development? |
| Publisher | Center for global development, Institute for International Economics |
| Pages | 159-174 |
| Number of pages | 16 |
| ISBN (Print) | 9780881323818 |
| Publication status | Published - 1 Jan 2005 |