Publication
Jun 2005
This paper analyzes the supply-side effects of entering multinational firms on the local industry. The authors assess whether the entries result in technology transfer to local suppliers and in backward linkages. They develop a model wherein multinationals choose between anonymous market interaction and contractual relationships with its suppliers. They argue that the latter will cause a transfer of technology to suppliers and a de-linking that can reduce the degree of competition among suppliers and thereby reduce local welfare.
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English (PDF, 33 pages, 364 KB) |
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Author | Ping Lin, Kamal Saggi |
Series | Kiel Institute Working Papers |
Issue | 1250 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2005 Kiel Institute for the World Economy |