Investigation into the power of multinational corporations and an anallytical evaluation of the determinants of US foreign direct investment in the European economic community: a special case of multinational oil companies

Thesis/Dissertation · Fri Jan 01 04:00:00 EST 1982

OSTI ID:5700321

Motavasseli, M

This study provides historical background on, and explores the philosophy, motivation and nature of, capital movement in general and the role of multinational oil companies in European countries in particular. Also, theoretical and statistical models are developed to determine the major factors affecting the flow of foreign direct investment and to analyze the economic impact of this flow. The study concludes that there are many quantitative as well as non-quantitative factors of various socio-economic and political natures that determine the flows of direct investment abroad. The empirical results, based on yearly data for the period of 1950 to 1979, indicate that, among many variables tested in the model, seven are statistically significant in determining the amount of US direct investment abroad. These variables are: the level of output produced by the affiliates of the US companies in host countries, the US interest rate, retained earnings by the affiliates of the US companies, size of the host market, tariff discrimination, wage differentials and growth of the host market. On the question of the welfare effect of foreign direct investment, it is concluded that developed host nations tend to gain more from foreign direct investment than do other less-developed host countries.

• OSTI ID: 5700321
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
294002 -- Energy Planning & Policy-- Petroleum
COMMON MARKET
ECONOMIC IMPACT
EUROPEAN COMMUNITIES
INDUSTRY
INSTITUTIONAL FACTORS
INTERNATIONAL ORGANIZATIONS
INVESTMENT
MULTINATIONAL ENTERPRISES
PETROLEUM INDUSTRY
POLITICAL ASPECTS
SOCIO-ECONOMIC FACTORS