MNE-CENTRIC INDUSTRIALISATION, GROWTH AND STRUCTURAL CHANGE: THE SINGAPORE EXPERIENCE AND POLICY LESSONS

Abstract

A key area of debate in the middle-income trap literature is concerned with the ability of developing countries to transition from a factor accumulation phase to a productivity driven phase within the Multinational Enterprise (MNE) led industrialisation framework. Critics of the strategy argue that because of the technological secrecy, monopolistic and oligopolistic practices germane to global operations of MNEs, it limits the scope for developing countries to transition into a productivity-driven phase of industrialisation. The existing body of literature has so far has paid little attention to broadening our understanding of the underlying dynamics of the process of MNE-led industrialisation and the related policy options. This thesis contributes to filling this gap in the literature, through an in-depth analytical narrative of the Singaporean MNE-led EOI experience. The thesis, highlights that there are ample opportunities for countries to move into productivity driven activities within this framework by creating the right policy environment.