The role of multinational enterprises and formal institutions in BOP markets
基于交易成本经济学，提出跨国企业应通过强化正式合同执行机构来降低贫困溢价，并以印度数字金融包容性为例，说明长期可持续路径。
There has been much debate on the role of multinational enterprises (MNEs) in ‘Bottom of the Pyramid’ (BOP) markets. MNEs are advised to overcome institutional voids by making maximum usage of informal institutions. In practice, the empirical support for MNEs' success and their contributions to the sustainable development of BOP markets has been limited. In this article, we focus on a realistic path –including the role of MNEs in this journey– to overcome the ‘poverty premium.’ The poverty premium refers to goods being available to BOP customers only at a very high cost, especially when using credit, and we attempt to address the root causes of this barrier. We present an actionable, transaction cost economics (TCE) based approach for MNEs and other market actors to strengthen and leverage contract-enforcing institutions in the long-term, using illustrative examples of the digital and financial inclusion journey observable in India. Our study confirms the continued need in BOP markets to build on conventional economics and management thinking, for the poorest people to be lifted out of poverty. Here, efficient formal institutions do matter.