Explaining the International Direct Investment Position of Countries: Towards a Dynamic or Developmental Approach

  • John H. Dunning
Part of the International Economics Study Group book series (IESG)

Abstract

This chapter explores the proposition that a country’s international direct investment position, and changes in that position, may be usefully explained by the eclectic theory of international production. Using data on the direct investment flows (or changes in the direct capital stock) of some 67 countries, over the period 1967–78, it also suggests that there is a systematic relationship between the determinants of those flows and the stage and structure of a country’s economic development.

Keywords

Petroleum Covariance Income Marketing Malaysia 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. V. Bornschier (1978), Multinational Corporations in the World Economy and National Development ( Zurich; Soziologisches Institut der Universität).Google Scholar
  2. P.J. Buckley and M. Casson (1980), ‘The optimal timing of a foreign direct investment’ (1981), Economic Journal, 91 (Mar.)Google Scholar
  3. H.B. Chenery and L. Taylor (1968), ‘Development patterns among countries and over time’, Review of Economics and Statistics, 50 (Nov.).Google Scholar
  4. H.B. Chenery (1977), ‘Transnational growth and world industrialization’, in B. Ohlin, P.O. Hesselborn and P.J. Wiskjman (eds), The International Allocation of Economic Activity ( London: Macmillan ).Google Scholar
  5. H.B. Chenery (1979), Structural Change and Development Policy ( Washington: World Bank).Google Scholar
  6. J.H. Dunning (1981a), ‘Explaining the International Investment Position of Third World Countries’, in K. Kumar (ed.), Multinationals from Third World Countries ( Lexington, Mass.: D.C. Heath ).Google Scholar
  7. J.H. Dunning (1981b), International Production and the Multinational Enterprise ( London: Allen and Unwin).Google Scholar
  8. J.H. Dunning and D. Depelteau (1982), Explaining the International Direct Investment of Countries: A Statistical Analysis (Ecole des Hautes Etudes Commerciales ( University of Montreal ), Les Cahiers du CETAI Research Paper Series to be published.Google Scholar
  9. J.H. Dunning and R.D. Pearce (1981), The World’s Largest Industrial Enterprises ( Farnborough: Gower).Google Scholar
  10. I.H. Giddy and A.M. Rugman (1979), A Model of Trade, Foreign Direct Investment and Licensing ( Graduate School of Business, Columbia University, Research Working Paper 274A ).Google Scholar
  11. M.O. Hill (1974), ‘Correspondence analysis: a neglected multivariate method’, Applied Statistics, 23, No. 3.Google Scholar
  12. K. Kojima (1978), ‘Giant multinational corporations: merits and defects’, Hitotsubashi Journal of Economics, 18, 2.Google Scholar
  13. S. Lall (1980), ‘Monopolistic advantages and foreign involvement by US manufacturing industry’, Oxford Economic Papers, 32 (Mar.).Google Scholar
  14. D. Lecraw (1977), ‘Direct investment by firms from less developed countries’, Oxford economic papers, 29 (Aug.).Google Scholar
  15. S.P. Magee (1977), ‘Multinational corporations, the industrial technology cycle and development’, Journal of World Trade Law, XI (July–Aug.).Google Scholar
  16. F. Mosteller and R.R. Bush (1954), ‘Selective quantitative techniques’, in G. Lindsay (ed.), Handbook of Social Psychology, Vol 1 ( Reading, Mass: Addison-Wesley ).Google Scholar
  17. T. Ozawa (1979), ‘International investment and industrial structure: new theoretical implications from the Japanese experience’, Oxford Economic Papers, 31 (Mar.).Google Scholar
  18. F. Root and A.A. Ahmed (1978), ‘The influence of policy instruments on manufacturing direct investment in developing countries’, Journal of International Business Studies, 9 (Winter).Google Scholar
  19. A.M. Rugman (1980), ‘Internationalisation: the general theory of foreign direct investment’, Weltwirtschaftliches Archiv, 116, 2.CrossRefGoogle Scholar
  20. J.M. Stopford (1976), ‘Changing perspectives on investment by British manufacturing multinationals’, Journal of International Business Studies, 7 (Fall–Winter).Google Scholar
  21. UN (1978), Transnational Corporations in World Development: a Reexamination (New York: United Nations Economic and Social Council, E 78 II A5).Google Scholar
  22. R. Vernon (1974), ‘The location of economic activity’, in J.H. Dunning (ed.), Economic Analysis and the Multinational Enterprise ( London: Allen and Unwin ).Google Scholar
  23. L.T. Wells (1977), ‘The internationalisation of firms from developing countries’, in T.Agmon and C.P. Kindleberger (eds), Multinationals from Small Countries ( Cambridge, Mass: MIT Press ).Google Scholar
  24. B.D. Wilson (1978), Foreign Disinvestments: Friends or Foe?, Graduate School of Business Administration, University of Virginia, Working Paper DSWP-78–08.Google Scholar

Copyright information

© International Economics Study Group 1982

Authors and Affiliations

  • John H. Dunning

There are no affiliations available

Personalised recommendations