TY - JOUR
T1 - Inward investment and host country market structure
T2 - the case of the U.K.
AU - Driffield, Nigel
PY - 2001/6
Y1 - 2001/6
N2 - Multinational enterprises are seen as vehicles for the international transfer of investment capital, protecting and increasing profits by transferring ownership advantages across national boundaries. As such, the argument often follows that foreign direct investment then exacerbates the monopoly problem in host countries, by increasing concentration and facilitating collusion. This paper however reveals the reverse, that inward investment into the U.K. acts to reduce concentration at the industry level, by increasing competitive pressures on domestic industry.
AB - Multinational enterprises are seen as vehicles for the international transfer of investment capital, protecting and increasing profits by transferring ownership advantages across national boundaries. As such, the argument often follows that foreign direct investment then exacerbates the monopoly problem in host countries, by increasing concentration and facilitating collusion. This paper however reveals the reverse, that inward investment into the U.K. acts to reduce concentration at the industry level, by increasing competitive pressures on domestic industry.
KW - FDI
KW - industry concentration
UR - http://www.scopus.com/inward/record.url?scp=0035063960&partnerID=8YFLogxK
UR - http://www.springerlink.com/content/vp65703312pn0408/
U2 - 10.1023/A:1007874526535
DO - 10.1023/A:1007874526535
M3 - Article
SN - 0889-938X
VL - 18
SP - 363
EP - 378
JO - Review of industrial organization
JF - Review of industrial organization
IS - 4
ER -