Presence Of Multinational Corporations Research Articles

Local firms spillovers from multinationals’ exports in Switzerland

This paper aims to examine how local firms can learn from the export activities of large multinational corporations (MNCs). Arguing that MNCs’ export activities could act as catalysts for local firms, allowing them to start exporting or intensify their export volume, we hypothesize that the size and extent of export spillovers depend on the linkage between local firms and MNCs, the geographical distance between them in the home country, and the foreign export market destination in terms of psychic distance from the home market. Using Swiss manufacturing firm-level data, we found support to this learning by exporting effect through which local firms benefit from the presence of MNCs’ exporter counterparts and the export activities of their upstream MNCs’ suppliers, with particular effects of the nature and the physical location of destinations. From these findings, several important academic and practical implications are exhibited and discussed

Corporate Social Performance and Firm Location

The study addresses the relationship between firm location and the corporate social performance (CSP) of manufacturing enterprises in India. The study argues that a higher number of multinational corporations (MNCs) at a location leads to higher social performance. An environment and social involvement (ESI) index, based on ISO26000 and National Voluntary Guidelines, has been used to measure the corporate social performance of manufacturing enterprises. The data are obtained through questionnaires from a survey of 121 medium-sized manufacturing enterprises in the national capital region in India and analyzed through one-way ANOVA and linear regression. Results reveal that the presence of MNCs at the location of enterprises is significant to their CSP. The findings of the study aggregate to make original and substantive contributions to the CSP literature on the geography of strategic management. This research is valuable for social responsibility practitioners in developing countries for start-ups and small and medium enterprises who are seeking to enhance their understanding to formulate pragmatic and effective strategies to improve CSP.

Multinational Corporations’ Key Stakeholders in the Economic Development in Less Economically Developed Countries: A Literature Review

This paper examines whether multinational corporations (MNCs) are essential stakeholders in economic development. Over the years, MNCs have been considered necessary for achieving socioeconomic development, especially in less developed countries (LDCs). However, some literature argues that the presence of MNCs in LDCs has limited benefits for society. This has been premised on the notion that they have failed to help address social ills, such as unemployment, poverty, and inequality, and have been able to achieve undue influence with the politics of LDCs. This paper employs the stakeholder theory to assess whether MNCs contribute to economic development and foster collaborative relations within their communities. This paper used secondary data (through a literature review) to collect relevant information. It was revealed that host governments have limited associations and, to a great extent, control how MNCs conduct their business. While MNCs have been lauded for foreign direct investment inflow, such inflow has often not translated into tangible development for some countries. Furthermore, in developing regions, the lack of adequate legislation, and widespread inequality, corruption and poverty makes it difficult for the potential benefits of MNCs to be realized. Leveraging the potential benefits of MNCs needs to be supported by the relevant legislation and political will, something lacking in many developing countries.

A Quantile Regression Analysis of Absorptive Capacity in the Malaysian Manufacturing Industry

Using a set of absorptive capacity proxies, we present new empirical findings on the role of absorptive capacity in assimilating the technology effects from the presence of multinational corporations (MNCs) in the Malaysian manufacturing industry. We applied a quantile regression estimator to explicitly gauge the level of absorptive capacity among workers by their levels of education at different quantiles of the conditional FDI distribution during the period of 2000–2018. We conclude that the medium-high technology industries benefit more from FDI if the workers’ absorptive capacity level reaches at least the median quantile. Based on the findings of this study, we suggest that educational digitisation efforts in enhancing quality human capital should be intensified, by equipping them with the latest knowledge and skills, which in turn requires cooperation between universities, public technical and vocational education and training (TVET) institutions as well as MNCs.

Brewing Violence: Foreign Investment and Civil Conflict

Two prominent features in current world affairs are the unprecedented level of global economic integration and the growing incidence of intrastate violence. We develop and test a novel argument linking global integration through foreign investment to intrastate armed conflict. The presence of multinational corporations in developing countries can cause market concentration, resulting in high rents. Disputes between governments and would-be challengers over the appropriation of these rents are likely to turn violent, increasing the incidence of armed conflict. State capacity mitigates this positive association between foreign investment and intrastate war. Strong states have the capacity to deter rebellions, address citizens’ demands through institutionalized mechanisms, and credibly commit to the peaceful resolution of conflicts. Using data from developing countries for over four decades and addressing potential endogeneity and selection biases, we find strong support for our hypotheses. Our findings have important implications for understanding the link between economic interdependence and conflict.

Cultural spillovers from multinationalto domestic firms: Evidence on female employment in Costa Rica

We study cultural spillovers from multinational corporations (MNCs) to domestic companies in the information technology (IT) sector of Costa Rica. Using firm-level panel data for 2001–2011, we explore to what extent domestic firms’ female labour share increases as a result of business operations of MNCs. We find evidence of two channels for cultural spillovers from foreign direct investment (FDI) to domestic IT firms influencing higher shares of female employment: learning (imitation) effects through labour mobility, which allows former MNC employees working in domestic firms to apply skills and gender practices from their previous work experience, and demonstration effects with the presence of MNCs (through competition in the labour market), which include imitation of social norms and values of MNCs by local firms. No evidence was found for a relationship between backward linkages (purchases) of MNCs from domestic suppliers and female labour share. To promote greater participation by women in labour markets through FDI attraction, strengthening cultural spillovers would require implementing FDI promotion policies to (i) enhance the absorptive capacity of domestic IT firms, (ii) attract IT MNCs with greater potential to generate spillovers, and (iii) foster a favourable national investment climate for enhancing business interactions between IT MNCs and domestic IT firms.

Belajar dari Kegalalan Politik Pengelolaan SDA Orde Baru: Studi Kasus Kalimantan Timur

The province of East Kalimantan has the largers tropical forests in Indonesia. throughout the era of the New Order government under President Soeharto the natural resources especially tropical forests were sistematically exploited without any serious effort on the part of the government and private companies to take care of the social and environmental aspect of such exploitation. As a result, severe environmental degradation took place and the local people in the country side lost their sources of livelihood. In the midst of the presence of multinational corporations and private forest concessionaires ironically there were enclaves of poverty. In this area of regional autonomy there is much doubt that the situation could get better as local government authorities tend to repeat past mistakes and they are unable to control the existance practice of illegal logging. This writing will propose some policy suggestions that might be helpful for promoting the principles of sustainable development and putting an end to the phenomenon of “the tragedy of the commons”.

The Productivity–Real Wage Nexus in Emerging European Economies: Evidence from Poland

ABSTRACT We investigate the nature of the wage–productivity nexus in Poland, considering the validity of the alternative theories of this relationship in the context of a recent hypothesis pointing to the role of multinational corporations (MNCs) in decoupling productivity from wages. Using spatial and nonspatial dynamic panel models, we find indirect support for this hypothesis. Sectors with the highest presence of MNCs tend to have higher labor productivity but lower wages. Unlike productivity, wages are also subject to stronger spatial spillovers, suggesting that they are sometimes set based on their geographic proximity, rather than on workers’ productivity. The policy implications of the findings are discussed.

STRATEGI APPLE INC. DALAM PENGUASAAN PASAR PRODUK TEKNOLOGI DI INDONESIA TAHUN 2015-2019

The presence of Multinational Corporations (MNCs) is one of the impacts of the development of patterns of international relations after World War 2. MNCs become non-state actor which is considered to have a great influence on the international political economy. MNC itself is based in its home country and has subsidiaries or activities in other countries or we called host country. Indonesia has become one of the countries with potential markets chosen by various MNCs, and Apple Incorporation is one of them. Apple Inc. is one of the MNC from California, USA which is engaged in technology. The market in Indonesia is no doubt. Apple itself has a good image in Indonesian technology market. Various policies faced by Apple Inc. in Indonesia must be accepted in the interests of this company. In addition, Apple must be faced with competitors who also exist in the Indonesian technology market. Apple Inc. must have a strategy that can maintain its presence in Indonesia. So that it can continue to internationalize its products in the Indonesian technology market.

The MNC‐Coalition Paradox: Issue Salience, Foreign Firms and the General Data Protection Regulation

AbstractWhile the EU takes on an increasingly global regulatory role, we have only a limited understanding of how or when foreign firms influence EU regulation. Multinational Corporations (MNCs) have many of the power resources that determine lobbying success. We argue, however, that high salience blunts foreign corporate power. High salience generates legitimacy concerns for EU institutions, creating a political opportunity structure that favours pluralistic participation. Civil society can point to the instrumental power of foreign firms as a means to contaminate business interests, amplifying consumer voices in the process. We label this the MNC‐Coalition paradox. We investigate the European Union's General Data Protection Regulation to assess our argument, as the revelations made public by Edward Snowden created an exogenous shock in salience. Highlighting the presence of MNCs – such as Google and Facebook – in the lobbying process allowed civil society leaders to delegitimize business preferences and bolster consumer protection. In addition to the theoretical contribution, our evidence sheds light on the policy process behind legislation that will shape fundamental civil liberties and privacy rights not only for Europeans but globally.

Do Anti-dumping Duties Still Matter? The Curious Case of Aluminum Foil

AbstractIn 2009, the EU imposed anti-dumping duties on aluminum foil imported from Armenia, Brazil, and China for five years. The final determination resulted in the imposition of definitive anti-dumping duties of 13.4% (Armenia), 17.6% (Brazil), and 6.4–30% (China). This paper quantifies the direct and indirect effects of the EU anti-dumping duty on EU and US imports from targeted and unaffected countries using detailed data for the years 2006 through 2012, and controlling for exports of all products within the aluminum sheet, plate, and foil manufacturing industry from all countries. The findings point to the trade destruction, trade depression, trade diversion, and trade deflection effects typically found in the existing literature. However, the uniqueness of this case lies in the fact that the Armenian exporter is a subsidiary of a Russian firm. And as Armenia's exports to the EU declined, they expanded rapidly to the US. At the same time, the US imports from Russia, a country not directly touched by the anti-dumping ruling, declined dramatically, and were diverted to the EU. This points to the potential ineffectiveness of anti-dumping duties in the presence of multinational corporations with production facilities located across countries differentially impacted by anti-dumping duties.

KONSEP UNITED NATIONS GLOBAL COMPACT DALAM ISU HAK ASASI MANUSIA UNTUK TERWUJUDNYA CORPORATE SUSTAINABILITY

The presence of multinational corporations as one subjects of international economic law has had a significant influence in international economic relations. A corporation certainly can give a big contribution in social, economic, and cultural progress. But, on the other side, we are also faced by many processes which bring adverse impact to societies, loss the sources of the society life or at more serious level is the violations of human rights in the sector of corporate activity. This article aims to see how the international community’s effort in issues related to the company in the business filed when dealing with human rights. One of efforts undertaken by the international community was made an initiative name with United Nations Global Compact. Author use juridical-normative research method with literature studies. According to the result of studies, can be seen that the ultimate goal of initiative is to create a sustainable world economy. By the presence of this initiative, we hope that businesses which run a multinational company may enforce the values and principles that have been established in United Nations Global Compact, on of which is the respect of human rights.

Brewing Violence: Foreign Investment and Civil Conflict

Two prominent features in current world affairs are the unprecedented levels of global economic integration and the growing incidence of intrastate violence. We develop and test a novel argument linking foreign direct investment (FDI) to intrastate armed violence in developing countries. We argue that the entry and presence of multinational corporations causes market concentration in host countries, resulting in high rents. This in turn increases the return to appropriation or create opportunities for rebel groups to enhance their fighting capabilities, thereby increasing the likelihood of conflict. We further posit that state capacity mitigates the positive association between FDI and conflict. Strong states have the capacity to deter rebellions and address citizens' demands through institutionalized mechanisms. Using a sample of developing countries from 1970 to 2013 and addressing endogeneity bias, we find strong support for our hypotheses. Our findings have important implications for understanding the link between economic interdependence and conflict.

Do Anti-Dumping Duties Still Matter? The Curious Case of Aluminum Foil

In 2009, the EU imposed anti-dumping duties on aluminum foil imported from Armenia, Brazil and China for five years. The final determination resulted in the imposition of definitive anti-dumping duties of 13.4% (Armenia), 17.6% (Brazil) and 6.4-30% (China). This paper quantifies the direct and indirect effects of the EU anti-dumping duty on EU and US imports from targeted and unaffected countries using detailed data for the years 2006 through 2012, and controlling for exports of all products within the aluminum sheet, plate and foil manufacturing industry from all countries. The findings point to the trade destruction, trade depression, trade diversion, and trade deflection effects typically found in the existing literature. However, the uniqueness of this case lies in the fact that the Armenian exporter is a subsidiary of the Russian firm. And as Armenia’s exports to the EU declined, they expanded rapidly to the US. At the same time, the US imports from Russia, a country not directly touched by the anti-dumping ruling, declined dramatically, and were diverted to the EU. This points to the potential ineffectiveness of anti-dumping duties in the presence of multinational corporations with production facilities located across countries differentially impacted by anti-dumping duties.

Does Economic Freedom Enhance the Impact of Foreign Direct Investment on Economic Growth in North African Countries? A Panel Data Analysis

This article investigates the causal interactions between foreign direct investment (FDI), economic freedom and economic growth on a panel of four North African countries (Tunisia, Morocco, Algeria and Egypt), over a 5-year period from 1980 to 2013. Using the System Generalized Method of Moments (GMM) in a panel data analysis, we found strong evidence of a positive link between FDI and economic growth. We also found that economic freedom appears to be working as a complement to FDI and that the effect of FDI is more pronounced in the presence of the economic freedom variable. This means that the countries which promote greater freedom of economic activities benefit more from the presence of multinational corporations (MNCs).

Openness, Ownership, and Regional Economic Growth in Vietnam

ABSTRACTIn this article, we examine the influences of exports, multinational corporations (MNCs), and the share of state-owned enterprise (SOE) production in regional economic growth in Vietnam for the years 1996–2006. Various estimations, without and with considering the endogeneity problem, confirm that exports and the presence of MNCs are influential factors on promoting economic growth. Crucially, provinces with a higher ratio of SOE production have experienced higher economic growth. However, the positive relationship between SOE share and economic growth should be carefully interpreted.

Environment challenges in Africa: further dimensions to the trade, MNCs and energy debate

Purpose– The purpose of this paper is to examine the linkage between environmental challenges, multinational corporations (MNCs) activities, trade and energy in Africa; and further elaborate on the role of institutions, as an intervening variable.Design/methodology/approach– In this study, the authors extended the Environmental Kuznets Curve (EKC) model by including indicators of the presence of MNCs, trade and energy in the basic EKC model that has measures of environmental pollution (CO2), economic growth (gross domestic product per capita) and its squared value. The role of institutions was also considered and included as an inter-mediating variable. This model was tested on a sample of 27 African countries, for the period 1996-2010. The systems GMM was applied for the empirical analysis. This approach was aimed at circumventing the possibility of reverse causality and endogenous explanatory variables-such as institutions.Findings– Trade and MNCs’ activities may not have much contemporaneous impact on the environment. However, their lagged values have adverse and significant influence on the current values of environmental challenge. This implies that environmental policies regarding trade and MNCs require time response lag. Energy was significant only at contemporaneous value but not at its lagged value. Institutional development helps to suppress the negative excesses (like pollution) from the activities of trade, MNCs and energy, and consequently reduce environmental pollution.Originality/value– This paper included the role of institutions in the environmental pollution, trade, MNCs and energy debate. Empirical studies in this regard have inadvertently excluded this variable, but have, at best, included it as part of policy recommendations.

Gaining Perspective on ObesityObesity: Cultural and Biocultural Perspectives. By Alexandra A. Brewis. New Brunswick, NJ: Rutgers University Press, 2011.

During the past decade, obesity has taken center stage as one of the most pressing health problems of the new millennium. Health experts and policy makers have termed the phenomenon of relative rapid weight gain at population levels a “crisis” and an “epidemic.” Public discourses have primarily focused on what causes obesity, either blaming environmental factors—such as the prevalence of cheap, energy-dense, highly processed foods and beverages—or blaming individuals who fail to eat healthfully and engage in regular physical activity. The spread of obesity worldwide is attributed to processes associated with globalization, including mass industrialization, rapid urbanization, and the increasing presence of multinational corporations. Experts predict catastrophic health, economic, and social consequences if the trend toward obesity continues; yet, as Brewis points out in Obesity: Cultural and Biocultural Perspectives, public health interventions, which have historically focused on changing individual behaviors through knowledge and awareness, have been ineffective to date. Brewis delves beneath the surface of obesity-crisis rhetoric to examine adaptive, ecological, and cultural perspectives on obesity; discuss what we can learn from prevention and intervention efforts that have consistently failed; and suggest methods for moving beyond the limitations of statistics and cultural theorizing to better understand the complex, dynamic web of intersections between proximate and distal influences within biological, ecological, and cultural contexts. The author’s research on body image and nutrition, conducted during the past 20 years in the Pacific Islands, the United States, and Mexico, is discussed in conjunction with other similarly focused studies to explore historical and cross-cultural variation in obesity rates, risk, and beliefs about body size. Brewis addresses such critical questions as whether obesity is a disease, an illness, or simply a moral panic; why minority and poor urban populations are most at risk; why obesity remains

Revisiting the external impact of MNCs: An empirical study of the mechanisms behind knowledge spillovers from MNC subsidiaries

The majority of studies of knowledge spillovers from the presence of multinational corporations (MNCs) have focused on whether or not, rather than how knowledge spillovers occur from MNC subsidiaries to local host country firms. Using survey data from 210 MNC subsidiaries in Sweden, a composite model is developed examining the impact of two different environmental conditions on the occurrence of knowledge spillovers arising from innovation transfer within MNCs. We distinguish between horizontal knowledge spillovers (i.e., to competitors) and vertical knowledge spillovers (i.e., to customers and suppliers), and emphasise the conceptually important distinction between the two. The former are largely unintentional by nature whereas the latter can be considered as intentional knowledge diffusion. The results show that competitive pressure in the recipient subsidiary's local environment gives rise to unintentional knowledge spillovers, whereas it is negatively related to intentional knowledge diffusion. The results also support the notion that the degree of embeddedness of in a subsidiary's business network in the host country is positively related to intentional knowledge diffusion. An important finding of the study is that there is a positive relationship between intentional knowledge diffusion and unintentional knowledge spillovers.

Foreign direct investment, economic freedom and economic growth: International evidence

In this paper, we investigate the systemic link between economic freedom, foreign direct investment (FDI) and economic growth in a panel of 85 countries. Our empirical results, based on the generalized method-of-moment system estimator, reveal that FDI by itself has no direct (positive) effect on output growth. Instead, the effect of FDI is contingent on the level of economic freedom in the host countries. This means the countries promote greater freedom of economic activities gain significantly from the presence of multinational corporations (MNCs).