期刊名称:International Journal of Business and Management
印刷版ISSN:1833-3850
电子版ISSN:1833-8119
出版年度:2011
卷号:7
期号:1
页码:230
DOI:10.5539/ijbm.v7n1p230
语种:English
出版社:Canadian Center of Science and Education
摘要:Multinational enterprises exist because they hold certain competitive advantages over their local counterparts and affect local economies through their spillover effects. Research streams exploring the raison d’ etre and consequences of MNEs are quite distant and remote. This paper analyzes and integrates these two streams of literature, i.e. the competitive advantages that MNEs hold and their spillover effects in developing countries. The paper proposes a relationship and predicts the nature of spillover effects on the basis of competitive advantages of MNEs. This paper can guide the policymakers of developing countries to differentiate between the FDI that is good for their countries and FDI that weakens the already fragile economies of developing countries. The paper also opens a new avenue for the researchers by pointing towards a potential connection between MNEs’ competitive advantages and their spillover effects for the local economies. The relationship between FDI and competitive advantages of MNEs has rarely been researched previously and thus this paper contributes significantly to the existing literature.