The other multinationals in developing economies - response to Mr. Batra

Author(s): Coppin, Addington (1988)

Created 26 Jul, 1988
Categories Working Papers
Views: 2046
In a recent article, Batra (1986) presents a model which alludes to the effects of an emerging multinational sector in a developing economy. Specifically, via a two good, three factor model within which the MNC sector is distinguishable by its ownership and use of a specific factor, it is possible for the emergence of the MNCs in a capital-short, labour-surplus host economy to lead to a decline in labour employment, if they operate in the relatively capital intensive sector, and transfer an efficient technology but no (or little) capital. Further, as a consequence of the labour market's rigid wage rate, the income level also declines. (Previous title: Collection of unpublished research papers)

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