How multinationals affect small economies

The ultimate objective of this work was to seek to discover how multinational firms affect small host economies. The influences exerted by foreign direct investment, portfolio investment as well as those of other variables relating to bilateral and multilateral trade to which the theoretical literature grants some credit on the employment rate in particular and at a certain level of growth economic in small welcoming economies. The conclusion to the absence of links, or at the limit to their negligible nature, between multinational firms and growth in small economies during the period under review and this, whatever the period of analysis may be, can be controversial. . More concretely, the indicator associated with FMNs is positive in the dynamic relationship, but negative in the static relationship. It goes without saying that MNCs contribute to the creation of long-term jobs, but at a very marginal rate. In the short term, there is a substitution of FDI for domestic investment and therefore an increase in the unemployment rate.