The Selected Essays of John H. Dunning, Volume I
This volume and volume II of the set consist of some of my more substantial and influential contributions to the study of international business (IB), foreign direct investment (FDI) and global capitalism. The contributions stretch over nearly three decades, although the great majority were written in the 1980s and 1990s. The first volume deals almost entirely with the evolution of my thinking on the determinants of international production, that is, production financed by FDI and undertaken by multinational enterprises (MNEs). For the most part, the chapters are presented in chronological order. Chapter 1, after reviewing the state of the art of the subject in 1973, distinguishes between the firm or ownership (O) specific determinants of international production, and the country or location (L) determinants. However, although it acknowledged (pp. 23–36) the need to better understand the modality by which firms exploited (or augmented) their O advantages outside their home countries, it did not identify or evaluate these. This I attempted to do in a paper presented at a Nobel Symposium in Stockholm in 1976. Chapter 2 reproduces this paper, which introduces the concept of the eclectic paradigm (then called theory) of international production; and incorporates an internalization (I) component into the OLI triad of the determinants of MNE activity. Subsequent to this contribution, in the later 1970s and early 1980s, I attempted to empirically test and refine the eclectic paradigm, and to widen its analytical scope. Chapter 3 presents some evidence on the importance of some of the particular...