Do Emerging Market MNEs Offer Superior Benefits to Host Economies Compared to Western MNEs?
This analysis explores whether emerging market multinational enterprises (EMNEs) provide greater advantages to host economies than their Western counterparts. It examines direct and indirect effects, including economic impacts like competition, market concentration, and labor market dynamics. The study highlights benefits such as technology transfer, skill development, and the creation of local linkages. It further discusses how these firms affect education demand, local knowledge, and institutional imitations, ultimately assessing their role in enhancing host country economies.
Do Emerging Market MNEs Offer Superior Benefits to Host Economies Compared to Western MNEs?
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Presentation Transcript
Do EMNEs provide superior benefits to host economies than Western MNEs Hinrich Voss University of Reading, 31 March 2009
MNE Direct effects Indirect effects • BOP • Competition effects • Market concentration • Crowding out/in • Labour market effects • Wages • Training • Crowding out/in • Technology transfer • Codified technology • Know-how • Reverse transfer • Institutional transfer • Formal (standards) • Informal (value/norms) Spillovers Linkages • Unrelated local firms • Labour market • Transfer of trained employees • Increased demand and supply of education • Technology • Demonstration effects • Localised knowledge • Institutional imitation Related local firms JV partners Alliance partners Contractual partners Similar to direct effects but variable depending on the type of relationship and motive of the MNE parent Source: Dunning and Lundan (2008)