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The locally embedded multinational and institutional capture
Author(s) -
Phelps N A
Publication year - 2000
Publication title -
area
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.958
H-Index - 82
eISSN - 1475-4762
pISSN - 0004-0894
DOI - 10.1111/j.1475-4762.2000.tb00127.x
Subject(s) - multinational corporation , convergence (economics) , foreign direct investment , institution , scale (ratio) , economic system , economic geography , investment (military) , business , political science , political economy , economic growth , economics , finance , politics , law , physics , quantum mechanics
Summary Recent innovations in corporate organization have seen a growing body of literature entertain the idea that internationally mobile investment may be becoming more attached to local economies. Increasingly, these corporate dynamics are being met by national and sub‐national initiatives to attract and embed multinationals This paper explores the implications of this convergence of corporate and institutional dynamics primarily at the local, sub‐national scale. Recognition of the highly politicized nature of MNE‐institution relations at the sub‐national scale raises questions over the efficacy of sub‐national institutional capacity in the attraction and development of FDI and highlights the prospect of some form of capture of sub‐national institutional capacity.