This paper reviews the literature on the relationships between transnational corporations (TNCs) in the manufacturing sector and domestic enterprises as well as industrial structures in host LDCs. There are two broad sets of relationships involved, both of which are of significance for understanding the effects of TNCs on host economies and to the formulation of policy. The ‘direct’ relationships that TNCs strike up with local suppliers or purchasers (backward and forward ‘linkages’ in the Hirschman sense) can constitute powerful mechanisms for stimulating (or retarding) economic, and particularly industrial, growth in LDCs. The ‘indirect’ effects that the entry and operations of TNCs may have on local industrial structure, conduct, and performance may be equally important: TNCs may change the nature and evolution of concentration; they may affect the profitability and growth of indigenous firms; they may alter financing, marketing, technological, or managerial practices of the sectors that they enter; they may, by predatory conduct, drive domestic firms out of business; and so on.

TRANSNATIONALS, DOMESTIC ENTERPRISES, AND INDUSTRIAL STRUCTURE IN HOST LDCs: A SURVEY'

textGuoyong Liang is completing his Ph.D. in international business and works at the
Rotterdam School of Management, Erasmus University. His current research interests
include the theory of the multinational enterprise, business strategy, and
business/government interaction. Before his Ph.D. study in the Netherlands, Guoyong
Liang was a lecturer at the Shanghai University of Finance and Economics. He was also a
fellow at Shanghai Securities and Futures Institute. He has managerial experience in
China’s financial and ICT sector.

New Competition; Foreign Direct Investment and Industrial Development in China

Excessively large and rapidly growing urban populations characterize social structural change in less-developed countries. This is in contrast to the developmental patterns which accompanied struct...

Economic Dependence, Overurbanization, and Economic Growth: A Study of Less Developed Countries

The relationship between industrial market structure and foreign investment has been extensively studied in recent years, but almost exclusively to analyse the sorts of structures that give rise to multinational companies (MNCs), and then mainly in the context of advanced economies.2 The opposite chain of causation, from MNC entry to market structures in host countries, has been relatively neglected. Only occasional note has been taken of this issue in theoretical literature,3 and only a few empirical studies in developed countries4 and less developed ones5 have made rather desultory attempts to analyse it statistically.

Multinationals and market structure in an open developing economy: The case of Malaysia

This study examines whether and how foreign banking presence has influenced market concentration in the host commercial banking industry The evidence shows that foreign banking presence has contributed to the increased banking market competition in the case of the Indonesian banking industry The study also finds that the size of market and relaxation of government policy on market expansion (for example, lowering of minimum liquidity ratio) have negative relationships with banking market concentration, consistent with previous findings in the manufacturing sector On the other hand, market growth and number of banks have a positive influence on banking market concentration; economies of scale do not play their usual role as a market entry barrier in Indonesian banking

Foreign banking presence and banking market concentration: The case of Indonesia

Multinational corporations in Brazil and Mexico : structural sources of economic and noneconomic power : report to the Subcommittee on Multinational Corporations of the Committee on Foreign Relations, United States Senate

/pdf/la-experiencia-de-las-mayores-corporaciones-multinacionales-3dykztdaxb.pdf

Richard Scott Newfarmer

Papers

Multinational corporations in Brazil and Mexico : structural sources of economic and noneconomic power : report to the Subcommittee on Multinational Corporations of the Committee on Foreign Relations, United States Senate

La experiencia de las mayores corporaciones multinacionales norteamericanas en México