Advertisement

Introduction to the Volume

Chapter
  • 238 Downloads

Abstract

The world is witnessing major changes that are taking place in the fields of technology, foreign direct investments (FDIs), trade and development strategies. These changes are likely to be different from those that the world experienced during the last few decades in particular, after many countries have adopted globalization of their economies. The rules of the WTO and the onset of the information and communications technologies (ICTs) drastically reduced transaction costs and encouraged locations of manufacturing units based on efficiency rather than tariff jumping investments. One of the consequences of the relocation of manufacturing units across the globe has been the decline of the manufacturing activities in the USA and Europe and the emergence of Asia as the main manufacturing base. This has triggered protectionist tendencies and anti-free trade and protest against WTO rules in several developed countries. Thus while changing technologies are aiding globalization, the political atmosphere in the USA and many European countries is antiglobalization and outsourcing. However, the host developing countries especially China and India, who have been attracting FDI in a number of industries and sectors, are trying to get the best out of the presence of the FDI through multinational corporations (MNCs). One of the immediate benefits that they witnessed in a variety of industries is the shift in technological paradigms. The papers included in the book will concentrate on the process through which technological paradigm and trajectory shifts take place, the factors that facilitate such shifts, the changing pattern of FDI and technological efforts, shifting focus of international trade and development strategies, mostly focusing on India.

References

  1. Aitken, B. J., & Harrison, A. E. (1999). Do domestic firms benefit from direct foreign investment? Evidence from Venezuela. The American Economic Review, 89(3), 605–618.CrossRefGoogle Scholar
  2. Bitzer, J., Geishecker, I., & Görg, H. (2008). Productivity spillovers through vertical linkages: Evidence from 17 OECD countries. Economic Letters, 99(2), 328–331.CrossRefGoogle Scholar
  3. Blomström, M., & Sjöholm, F. (1999). Technology transfer and spillovers: Does local participation with multinationals matter? European Economic Review, 43(4–6), 915–923.CrossRefGoogle Scholar
  4. Buckley, P. J., Clegg, J., & Wang, C. (2002). The impact of inward FDI on the performance of Chinese manufacturing firms. Journal of International Business Studies, 33(4), 637–655.CrossRefGoogle Scholar
  5. Caves, R. E. (2007). Multinational enterprise and economic analysis (3rd ed.). Cambridge: Cambridge Survey of Economic Literature, Cambridge University Press.CrossRefGoogle Scholar
  6. Chen, S.-F. S. (2010). A general TCE model of international business institutions: Market failure and reciprocity. Journal of International Business Studies, 41, 935–959.CrossRefGoogle Scholar
  7. Dhrifi, A. (2015). Foreign direct investment, technological innovation and economic growth: Empirical evidence using simultaneous equations model. International Review of Economics, 62, 381–400.CrossRefGoogle Scholar
  8. Dunning, J. H. (1979). Explaining changing patterns of international production: In defence of the eclectic theory. Oxford Bulletin of Economics and Statistics, 41(4), 269–295.CrossRefGoogle Scholar
  9. Dunning, J. H. (2001). The key literature on IB activities: 1960–2000. The Oxford Handbook of International Business, 36–68.Google Scholar
  10. Dunning, J., & Lundan, S. M. (2008). Multinational enterprises and the global economy (2nd ed.). Cheltenham: Edward Elgar Publishing Limited.Google Scholar
  11. Javorcik, B. S., & Spatareanu, M. (2008). To share or not to share: Does local participation matter for spillovers from foreign direct investment? Journal of Development Economics, 85(1–2), 194–217.CrossRefGoogle Scholar
  12. Lew, Y. K., & Liu, Y. (2016). The contribution of inward FDI to Chinese regional innovation: The moderating effect of absorptive capacity on knowledge spillover. European Journal of International Management, 10(3), 284–313.Google Scholar
  13. Liu, Zhiqiang. (2008). Foreign direct investment and technology spillovers: Theory and evidence. Journal of Development Economics, 85(1–2), 176–193.CrossRefGoogle Scholar
  14. Loukil, K. (2016). Foreign direct investment and technological innovation in developing countries. Oradea Journal of Business and Economics, 1(2), 31–40.Google Scholar
  15. Sandhya, G. D., Mrinalini, N., & Nath, P. (2014). Sector and cluster effects of FDI in R&D in India. Emerging Trends, Economic and Political Weekly, 29(30), 182–190.Google Scholar
  16. Schumpeter, J. (1942). Capitalism, socialism and democracy. Cambridge, MA: Harvard Economic Studies.Google Scholar
  17. Siddharthan, N. S. (2016). Technology, globalisation and multinationals: The Asian experience. e-Book, published by eSocialSciences. http://esocialsciences.org/eBook/eBook.aspx.
  18. Sleuwaegen, L., & Dehandschutter, W. (1986). The critical choice between the concentration ratio and the H index in assessing industry performance. The Journal of Industrial Economics, 35(2), 193–208.CrossRefGoogle Scholar
  19. Vahter, P., & Jaan, M. (2019). The contribution of multinationals to wage inequality: Foreign ownership and the gender pay gap. Review of World Economics, 155, 105–148.CrossRefGoogle Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.Madras School of EconomicsChennaiIndia
  2. 2.Department of Humanities and Social SciencesIndian Institute of Technology BombayMumbaiIndia

Personalised recommendations