Comparing foreign subsidiaries and local firms in LDCS: Theoretical issues and empirical evidence
- 1 January 1990
- journal article
- research article
- Published by Taylor & Francis in The Journal of Development Studies
- Vol. 26 (2) , 205-228
- https://doi.org/10.1080/00220389008422148
Abstract
The article reviews the empirical evidence on the comparative behaviour of foreign subsidiaries and locally‐owned firms in four main areas which have a bearing on development: technology, marketing, foreign trade and wages. It is argued that the conventional cross‐section analysis of the behaviour of the different types of firm is a poor guide to the impact of foreign investment on host countries, and that longitudinal industry studies are a more fruitful approach for future research.Keywords
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