MNC Strategies and Linkage Effects in Developing Countries

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    Abstract

    The paper addresses the question of which implications MNC strategies have to FDI linkage effects in developing countries. Two contrasting MNC strategies reflecting an integration-responsiveness dichotomy are scrutinized as to their job effects on local linkage partners in developing countries. It is hypothesized that compared to investments undertaken by MNCs following strategies of global integration, investments of MNCs pursuing local responsiveness create more jobs but imply less job upgrading in developing countries. The hypotheses are tested on a sample of Danish MNCs with extensive investments in developing countries.
    Original languageEnglish
    Number of pages39
    Publication statusPublished - 2007

    Keywords

    • Multinational corporations
    • Strategy
    • Linkages
    • Developing countries

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