Inward investment and host country market structure: the case of the U.K.

Nigel Driffield

Research output: Contribution to journalArticle

Abstract

Multinational enterprises are seen as vehicles for the international transfer of investment capital, protecting and increasing profits by transferring ownership advantages across national boundaries. As such, the argument often follows that foreign direct investment then exacerbates the monopoly problem in host countries, by increasing concentration and facilitating collusion. This paper however reveals the reverse, that inward investment into the U.K. acts to reduce concentration at the industry level, by increasing competitive pressures on domestic industry.
Original languageEnglish
Pages (from-to)363-378
Number of pages16
JournalReview of industrial organization
Volume18
Issue number4
DOIs
Publication statusPublished - Jun 2001

Keywords

  • FDI
  • industry concentration

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