Multinational Enterprises from Emerging Markets: Implications for the North and the South

Abstract

Not too long ago, the topic of multinational enterprises (MNEs) from developing countries was something of a novelty. In the mid-1980s, when I first began to teach a graduate course on the economics of the MNE, I would always devote one of thirteen classes to the topic (in part, selfishly, because in addition to industrial organization, my other field is development and, therefore, I found the topic fascinating). I recall just how thin the literature on this issue was then, both empirical studies and conceptual work. It was a struggle to put together interesting—and rigorous—material for the students. Today, as reflected by this conference volume, the flows of outward foreign direct investment (OFDI) from emerging markets have become substantial, both in volume and in breadth, although certainly they are much smaller than are flows from the advanced countries, where MNEs have a very long history. Settling on a course reading list now would be something of a challenge.