Ira Gang
Rutgers University
Department of Economics
E-mail: gang@economics.rutgers.edu
Item Number: [J29]
Title: Foreign Investment and Control of TNEs
Abstract: Foreign investment by TNEs in LDCs has been explained by
the differential rates of return available to foreign capital at home and
in the host country. However, an equally significant aspect of such investment
is the issue of control of TNE operations in the host country. This forms
the basic difference between foreign direct and foreign indirect investment.
This paper addresses this issue showing that foreign direct investment is
better for the host than indirect investment. The paper dicusses how host
government policy can affect the decisions of TNEs and achieve the best outcome
for the host economy.
Reference: Ira N. Gang and Shubhashis Gangopadhyay, Foreign
Investment and Control of TNEs, Journal of International Trade and Economic
Development, 3 (1994) 213-229.
Co-Author Information:
Shubhashis Gangopadhyay
India Development Foundation
E-Mail: shubg@vsnl.com
Download: Email
Requesting Pdf version of paper.