Hostname: page-component-586b7cd67f-t7fkt Total loading time: 0 Render date: 2024-11-29T00:54:34.076Z Has data issue: false hasContentIssue false
  • English
  • Français

A Comparative Study of the Inter-Industry Determinants and Economic Performance of Foreign Direct Investments in France and Canada*

Published online by Cambridge University Press:  17 August 2016

Robert F. Owen
Get access

Extract

Multinational corporations and import competition assume high profiles in economic policy debates in both Canada and France. An initial glance at the structure of foreign direct investment and trade in these two countries also indicates certain similarities. The openness of the Canadian and French economies to international trade is quite comparable, while such industries as petroleum and natural gas, pharmaceuticals, and para-chemicals head both countries’ lists of the sectors with the largest shares of foreign controlled sales and assets. In addition, there is a relatively high correlation coefficient of .603 between the inter-industry measures of foreign direct investment in the two countries (based on the sales data used in this study), while the correlation between the sum of their import and foreign subsidiaries’ shares (total foreign penetration) is .489.

Type
Part Three: Foreign Investment and Factor Mobility
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 50 , Issue 3-4 , 1984 , pp. 221 - 262
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 1984 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

Two special debts are owed to Pierre Villa for advice on computing techniques and to Marie-Christine Noël for exceptional diligence in the preparation of this manuscript.

References

Balassa, B. (1965), Tariff Protection in Industrial Countries: an Evaluation, The Journal of Political Economy, pp. 573–594.Google Scholar
Baldwin, R.E. (1971), Determinants of the Commodity Structure of U.S. Trade, American Economic Review, pp. 126–146.Google Scholar
Baldwin, R.E. (1979), Determinants of Trade and Foreign Investment: Further Evidence, The Review of Economics and Statistics, pp. 40–48.Google Scholar
Berosten, C.F., Horst, T. and Moran, T. (1978), American Multinationals and American Interests, Washington, Brookings Institution.Google Scholar
Brash, D.T. (1966), American Investment in Australian Industry, Cambridge, Mass., Harvard University Press.Google Scholar
Caves, R.E. (1974), Causes of Direct Investment: Foreign Firms’ Shares in Canadian and United Kingdom Manufacturing Industries, Review of Economics and Statistics, pp. 279–293.Google Scholar
Caves, R.E. (1982), Multinational Enterprise and Economic Analysis, Cambridge, Great Britain, Cambridge University Press.Google Scholar
Caves, R.E., Porter, M. & Spence, A.M. (with Scott, J.T.) (1980), Competition in the Open Economy, Cambridge, Mass., Harvard University Press.Google Scholar
Chow, G.C. (1960), Tests of Equality Between Sets of Coefficients in Two Linear Regressions, Econometrica, pp. 591–605.Google Scholar
Dunning, J.H. & Cantwell, J.A. (1982), Investissements américains et compétitivité technologique européenne, L’Actualité Economique, pp. 341–379.Google Scholar
Dunning, J.H. (1981), International Producion and the Multinational Enterprise, London, Allen & Unwin Publishing Company.Google Scholar
English, H.E. & Owen, R.F. (1981), The Role of Marketing in the Concentration and Multinational Control of Manufacturing Industries, Bureau of Competition Policy Research Monograph, number 11, Consumer and Corporate Affairs, Canadian Government.Google Scholar
Geroski, P.A. & Jacquemin, A. (1984), Large Firms in the European Corporate Economy and Industrial Policy in the 1980s, in Alex, Jacquemin (ed) European Industry: Public Policy and Corporate Strategy, Oxford, Oxford University Press.Google Scholar
Goldberg, M.A. (1972), The Determinants of U.S. Direct Investment in the E.E.C. : Comment, American Economic Review, pp. 692–699.Google Scholar
Hewitt, G. (1975), U.S. Penetration of Canadian Manufacturing Industries, Unpublished Ph. D. Dissertation, Yale University.Google Scholar
Horst, T. (1972), The Industrial Composition of U.S. Exports and Subsidiary Sales to the Canadian Market, American Economic Review, pp. 37–45.Google Scholar
Hufbauer, G.C. (1975), The Multinational Corporation and Direct Investment, in Kenen, P.B. (ed), International Trade and Finance: Frontiers for Research, Cambridge, Cambridge University Press.Google Scholar
Kmenta, J. (1971), Elements of Econometrics, New York, Macmillan Company.Google Scholar
Lunn, J. (1980), Determinants of U.S. Direct Investment in the E.E.C.: Further Evidence, European Economic Review, pp. 93–101.Google Scholar
Lunn, J. (1983), Determinants of U.S. Direct Investment in the E.E.C.: Revisited Again, European Economic Review, pp. 391–393.Google Scholar
Mcculloch, R. & Owen, R.F. (1983), Linking Negotiations on Trade and Foreign Direct Investment, in Kindleberger, Charles P. and Andretsch, D.B. (eds), The Multinational Corporation in the 1980’s, Cambridge, Mass, MIT Press.Google Scholar
Orr, D. (1975), The Industrial Composition of U.S. Exports and Subsidiary Sales to the Canadian Market: Comment, American Economic Review, pp. 230–234.Google Scholar
Owen, R.F. (1982a), Inter-Industry Determinants of Foreign Direct Investments: a Canadian Perspective, in Rugman, A. (ed), New Perspectives on the Multinational Enterprise, New York, St Martin’s Press.Google Scholar
Owen, R.F. (1979), Inter-Industry Determinants of Foreign Direct Investment: A Perspective Emphasizing the Canadian Experience, Working Papers in International Economics, G-79–03, Princeton University.Google Scholar
Owen, R.F. (1982b), Trade and Investment : A Dissagregate Study for Canadian Manufacturing Industries, Unpublished Paper, University of Wisconsin-Madison, July 1982; presented at the Tenth Annual E.A.R.I.E. Conference, Bergen, Norway, August 1982 and at the A.S.S.A. Meetings, San Francisco, December 1983.Google Scholar
Porter, M.E. (1974), Consumer Behavior, Retailer Power and Market Performance in Consumer Goods Industries, Review of Economics and Statistics, pp. 419–436.Google Scholar
Safarían, A.E. (1966), Foreign Ownership of Canadian Industry, Toronto, McGraw Hill.Google Scholar
Safarían, A.E. (1969), The Performance of Foreign-Owned Firms in Canada, Montreal, Private Planning Association of Canada.Google Scholar
Saunders, R.S. (1982), The Determinants of Interindustry Variation of Foreign Ownership in Canadian Manufacturing, Canadian Journal of Economics, pp. 77–84.Google Scholar
Scaperlanda, A.E. & Mauer, L.J. (1969), The Determinants of U.S. Direct Investment in the, E.E.C., The American Economic Review, pp. 558–568.Google Scholar
Scaperlanda, A. & Balough, R. (1983), Determinants of U.S. Direct Investment in the E.E.C.: Revisited, European Economic Review, pp. 381–390.Google Scholar
Scarpelanda, A.E. & Mauer, L.J. (1972), The Determinants of U.S. Direct Investment in the E.E.C.: Reply, American Economic Review, pp. 700–704.Google Scholar
Schmitz, A. & Bieri, J. (1972), E.E.C. Tariffs and U.S. Direct Investment, European Economic Review, pp. 259–270.Google Scholar
Sleuwaegen, L. (1984), The Determinants of Interindustry Variation of Foreign Ownership in Belgian Manufacturing, Unpublished Paper Presented at the Eleventh Annual E.A.R.I.E. Conference, Fontainebleau, France, August 1984.Google Scholar
Swedenborg, B. (1979), The Multinational Operations of Swedish Firms: An Analysis of Determinants and Effects, Stockholm, The Industrial Institute for Economic and Social Research.Google Scholar