ABSTRACT
In recent years, industrial market structure and its relationship to foreign investment has been extensively researched. The primary focus of the research has been on the kinds of market structures that favor the growth of multinational firms (MFs) mostly in the context of advanced economies. The effect of MF entry on host market structure has received little attention. The theoretical literature has dealt with this on few occasions (Caves, 1974; Dunning, 1974); with a few empirical studies in developed countries (Bonitsis and Rivera-Solis, 1993; Clark and Speaker, 1992; Smirlock and Brown, 1986; Steuer, 1973; Dunning, 1973; Rosenbluth, 1970) and in developing countries (Lall, 1979; Newfarmer, 1978; Connor and Mueller, 1977; Newfarmer and Mueller, 1975).
