ETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA) 1100
The widening range of countries acting as home and host to MNEs, and the continuing growth in all forms of cross-border economic activity, have prompted a large literature on the effects of outward MNE activity on the host countries. A smaller body of work has examined the effects on the home countries of MNEs, but this literature has remained quite fragmented. The purpose of this paper is to bring together and review the different strands of the literature examining the home country effects, and to discuss how some of the changes ongoing in the global economy are likely to impact the analyses on the complementarity between home and host country activities.
Foreign direct investment, multinational enterprises, globalisation, home country effects