Multinational Enterprises and Industrial Organization

This book illustrates how economic theory and statistical tools can be used to understand and evaluate the implications for a developing economy of foreign ownership of enterprises. The author analyzes the interindustry pattern of operations of multinational enterprises (MNEs) in Indian manufacturing within the framework of internalization theory. Using unpublished financial statistics for 49 industries, 15 structural and behavioural variables are examined to demonstrate that MNEs in India have larger scales of operation, enjoy higher profit margins and are more vertically integrated, fund-rich and skill-intensive than their local counterparts.