FY 2016/2017 Research Topic: C-27
Production Patterns of Multinational Firms in a Four-Country Framework: Theory and Empirics
One of the key factors behind the growth in global trade in recent decades is the increase in intermediate input as a result of the development of vertical production networks. It is widely recognized that the formation of production networks has resulted from the expansion of multinational enterprises’ activities. Developing economies have benefitted from the development of vertical production networks since these networks enable them to incorporate an appropriate portion of the production process. This study aims to explore the factors and policies that may help bring a production process into a developing country by utilizing an extended version of the Knowledge-Capital model and to empirically test the validity of those factors.
April 2015 - March 2017