Towards a holistic framework of MNE–state bargaining: A formal model and case-based analysis

In this paper, we develop a holistic framework for MNE–state bargaining based on power-dependence theory. We contribute to IB theory by moving beyond a static, bilateral conceptualization of MNE–state bargaining towards a dynamic, multi-party framework. MNEs can shift the power balance in their favor by (a) reducing sunk costs from the investment, (b) improving access to alternative investments, (c) increasing the host government’s sunk costs,...