Externe Publikationen

How good are multinationals for you?

Vrolijk, Kasper
Externe Publikationen (2021)

published on blogs.lse.ac.uk, 16.08.2021

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The expanded presence of multinational enterprises in the world raises questions about how a country benefits from foreign direct investment. I review the evidence on global value chains (firms organising production across multiple countries) and “superstar firms”, those accounting for a large share of overall economic activity, with market concentration. I find that governments might have to adopt firm-specific policies, weighing the benefits and drawbacks of providing subsidies to attract multinationals.