Beyond Capital : Monitoring Development Outcomes of Multinational Enterprises
This study presents a novel set of indicators on outcomes of foreign direct investment spanning 63 developing countries and 10 areas that matter for development. Building on decade-long data collection by the World Bank Enterprise Surveys, the indi...
| Main Authors: | , |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/342571545336579695/Beyond-Capital-Monitoring-Development-Outcomes-of-Multinational-Enterprises http://hdl.handle.net/10986/31087 |
| Summary: | This study presents a novel set of
indicators on outcomes of foreign direct investment spanning
63 developing countries and 10 areas that matter for
development. Building on decade-long data collection by the
World Bank Enterprise Surveys, the indicators highlight
systematic differences between foreign multinational
enterprises and domestic firms across countries in
competitiveness outcomes such as productivity, innovation,
export orientation, as well as the extent to which they
promote inclusiveness through job creation, gender
empowerment, or supply linkages. Although there appears to
be no striking trade-off between competitiveness and
inclusiveness of foreign multinational enterprises, their
premia differ substantially across regions and income
groups. Differences in some key drivers of competitiveness,
such as productivity, innovation, and skills transfer,
appear to be increasing with income, although premia in most
outcomes are stronger in lower-middle-income or low-income
markets, highlighting the relevance of foreign multinational
enterprises for socioeconomic progress in these contexts.
Moreover, outcomes of foreign multinational enterprises in
areas such as export orientation, skills transfer, and
physical capital accumulation are more consistent across
countries, whereas in other areas the outcomes display wide
variation, suggesting potentially higher sensitivity to
investor motivations, sectors, seasonal trends, and business
environments. Policy efforts should take these differences
into account, to devise investment strategies that not only
seek to increase capital flows, but also enhance the
benefits that could be derived from them. |
|---|