COMPARING FOREIGN SUBSIDIARIES AND LOCAL FIRMS IN LDCS - THEORETICAL ISSUES AND EMPIRICAL-EVIDENCE

The article reviews the empirical evidence on the comparative behaviour of foreign subsidiaries and locally-owned firms in four main areas which have a bearing on development: technology, marketing, foreign trade and wages. It is argued that the conventional cross-section analysis of the behaviour of the different types of firm is a poor guide to the impact of foreign investment on host countries, and that longitudinal industry studies are a more fruitful approach for future research. © 1990, Taylor & Francis Group, LLC. All rights reserved.