Multinational Corporations and Local Firms in Emerging Economies

Abstract

laborations is probably due to the fact that researchers typically are unable to untangle the spillover eff ect from the direct eff ect at the aggregate level (Giroud and Scott-Kennel, ). Yet in reality, each vertical multinational has some horizontal features and horizontal firms do not replicate the totality of activities of the headquarter. More recently, International Business has taken an interest in spillovers insofar as they have implications for the conduct and performance of MNCs.The prospects of large spillovers may ease approval of large investment projects and a MNC's reputation and brand may gain from strong spillover performance.

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