Mario Zejan

Trade regimes and spillover effects of FDI: Evidence from Uruguay

Trade Regimes and Spillover Effects of FDI: Evidence from Uruguay. — This paper examines differences in the character and impact of FDI entering Uruguay during import substitution, pursued until 1973, and the subsequent more outwardoriented trade regime. Regression analysis shows that the labor productivity of local firms is positively related to the presence of older import-substituting MNCs in their industry. The presence of foreign affiliates established after 1973 has no apparent impact on local productivity, but seems to raise the likelihood that local firms engage in exporting. This may be a sign of export spillovers, indicating that local firms may pick up some exportrelated skills from the operations of outward-oriented foreign MNCs.

Host country competition, labor skills, and technology transfer by multinationals

Host Country Competition, Labor Skills, and Technology Transfer by Multinationals. — This paper examines the impact of local competition and the availability of skilled labor on the technology imports of foreign MNC affiliates in Mexican manufacturing industries. The authors find that proxies for local competition and labor skills are positively related to the recorded technology imports of foreign owned affiliates. The effects of competition appear to be particularly strong in intermediate and consumer goods industries, while the availability of skilled labor seems to be particularly important in durable and capital goods industries. Thus, government policies aiming to create a competitive climate and improve labor quality may also promote inflows of modern technology.ZusammenfassungWettbewerb im Gastland, Qualifikation der Arbeitskräfte und Technologietransfer durch multinationale Firmen. — Die Verfasser untersuchen, wie sich die Konkurrenz im Inland und die Verfügbarkeit ausgebildeter Arbeitskräfte auf den Technologietransfer ausländischer multinationaler Firmen in mexikanischen Industriezweigen auswirken. Sie zeigen, daß Näherungswerte für die Konkurrenz im Inland und die Qualifikation der Arbeitskräfte mit den Technologieimporten der Filialen in ausländischem Eigentum positiv korreliert sind. Der Einfluß des Wettbewerbs scheint besonders stark zu sein bei Erzeugern von Zwischenprodukten und Konsumgütern, während die Verfügbarkeit ausgebildeter Arbeitskräfte bei Erzeugern von dauerhaften Konsumgütern und Investitionsgütern besonders wichtig zu sein scheint. Daraus folgt, daß eine Regierungspolitik, die sich bemüht, ein Wettbewerbsklima zu schaffen und die Qualifikation der Arbeitskräfte zu erhöhen, auch den Import moderner Technologie begünstigt.

Why Do Multinational Firms Seek Out Joint Ventures

This paper uses a model of dichotomous choice to distinguish the characteristics of Swedish multinational firms that seek out joint ventures from those that do not. The findings suggest that firms with little experience of foreign production and highly diversified product lines are the most likely to share equity. In general, it is found that multinational firms that have the most to offer the developing countries are reluctant to enter into joint venture agreements. Therefore, imposing joint-venture status on multinationals may prevent the inflow of advanced technologies.

Intra-firm trade and Swedish multinationals

Firmeninterner Handel und schwedische multinationale Unternehmen. — In diesem Aufsatz werden verschiedene Hypothesen zu den Bestimmungsgrunden des firmeninternen Handels getestet, wobei einmalige Firmendaten schwedischer multinationaler Unternehmen benutzt werden. Die Ergebnisse zeigen, da\ die Neigung auslAndischer Filialen, von den Mutterfirmen zu importieren, positiv mit der ForschungsintensitAt des gesamten multinationalen Unternehmens korreliert ist. EinfuhrbeschrAnkungen des Gastlandes haben eine erhebliche negative Wirkung auf die Importe der Filiale von der Mutterfirma. Diese scheinen auch mit dem ProKopf-Einkommen im Gastland zuzunehmen. Die internationalen Reserven des Gastlandes schlie\lich, die herangezogen werden, um mogliche Anreize fur eine Manipulation der Transferpreise zu erfassen, fuhren zu keinen eindeutigen Ergebnissen.

MNC Entry Strategies: New Ventures or Acquisitions?

Multinational firms may initiate affiliate activities abroad in two different ways; either by building a new establishment (greenfield investment) or by taking over an already existing firm (acquisition).The two methods can be expected to yield different costs and benefits for the host economy. Some argue, for example, that acquisitions have few positive effects on productive capacity, employment or market concentration, and that foreign purchases of local firms should therefore be prevented. Others are less pessimistic and point to possible long- run effects on the host economy, such as improvements in technology and management practices.

Modes of International Investment

The role of technical progress as a key to economic growth is widely recognized today. New technologies can be developed domestically through investments in research and development (R&D), they can be imported in various ways from abroad, or generated through some combination of the two. Since R&D activities are normally very costly, many countries rely heavily on imports of modern technology from abroad. In most cases they must turn to multinational corporations, who have become the most important actors in the generation of technology.

R&D Activities in Affiliates of Swedish MNCs

The fact that multinational companies do not undertake all their research and development activities at home has become a matter of recent concern, both in the home and host countries of these companies. Some empirical work has been done on the question of why MNCs decentralize their RD Lall, 1979a; Hakansson, 1980; and Hirschey and Caves, 1981).1 The study by Hakansson (1980) is one of the few that deal with the determinants of the R&D intensity of MNC affiliates, but it is confined to subsidiaries that carry out R&D, while foreign affiliates that do not are excluded.2 Furthermore, the analysis does not take into account the characteristics of the MNC to which the affiliates belong.

MNCs and Structural Adjustment in Latin America: Lessons from the Debt Crisis

In the backwash of the debt financing of the 1970s and the world-wide recession of the early 1980s, many developing countries, particularly in Latin America, ran into serious debt-servicing difficulties. To cope with this debt crisis, radical policy changes were introduced. These ‘structural adjustment programmes’ generally included deregulation and privatization of the economies, and opening them to external markets and competition.1 The shift from inward to outward orientation has involved shifting production from domestic to export markets. In this study, we examine the extent to which a number of heavily-indebted Latin American countries have redirected their sales of manufactured goods to world markets and the role of multinational corporations in this shift. We are particularly interested in investigating whether affiliates of multinational firms are better equipped to redirect their sales than local firms in developing countries.2

Debt Repayment Capacity in Argentina and Uruguay

The problem of external indebtedness is central to the Latin American discussion on economic policy. The problem is also central to the political discussion in Latin America today. Nevertheless, the problems associated with the external indebtedness of the under-developed countries are poorly perceived. The theoretical development of the problem is insufficient and the necessary theoretical tools have not been found. The statistical data on external indebtedness is rather uncertain.