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ANALYSING THE REGIONAL IMPACT OF FOREIGN MANUFA CTURING FIRMS
Author(s) -
WILLIAMS DAVID
Publication year - 1996
Publication title -
tijdschrift voor economische en sociale geografie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 55
eISSN - 1467-9663
pISSN - 0040-747X
DOI - 10.1111/j.1467-9663.1998.tb01555.x
Subject(s) - multinational corporation , subsidiary , business , indigenous , order (exchange) , conceptual framework , work (physics) , industrial organization , economic geography , economics , sociology , ecology , social science , finance , engineering , biology , mechanical engineering
This article has been written in response to Pigozzi and Bagchi‐Sen's (1995) work on the impact which affiliates of foreign manufacturing firms make upon employment in the US economy. It will be argued that their analysis is incomplete because of inadequacies in their conceptual framework. In order to assess the impact of multinational subsidiaries it is necessary to use a framework which includes a more extensive range of modes of entry and subsidiary types. It is also necessary to consider, more extensively, the indirect employment effects brought about by the linkages which are created by the foreign‐owned subsidiary as well as the dynamic effects which influence the competitive environment including the capabilities of indigenous firms.