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Sourcing Patterns of Foreign-owned Multinational Subsidiaries in Europe

Author

Listed:
  • Ana Teresa Tavares

    (CEMPRE, Faculdade de Economia, Universidade do Porto)

  • Stephen Young

    (Strathclyde International Business Unit, University of Strathclyde)

Abstract

This paper investigates the determinants of the international input sourcing propensities of foreign-owned multinational subsidiaries in four EU host countries. Major findings concern the impact of subsidiary roles and economic integration on international sourcing patterns. Regional and global integration are leading to a greater import-orientation among MNE subsidiaries, including Product Mandate firms which are assumed to be strongly embedded within host economies. The results cast serious doubts on the effectiveness of traditional criteria for investment attraction; and confirm that stimulating local sourcing is problematic. Specific policy implications are developed relating to the attraction of inward foreign direct investment and to corporate development policies.

Suggested Citation

  • Ana Teresa Tavares & Stephen Young, 2004. "Sourcing Patterns of Foreign-owned Multinational Subsidiaries in Europe," FEP Working Papers 160, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:160
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Multinational enterprises; Subsidiaries; Sourcing; Europe.;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F15 - International Economics - - Trade - - - Economic Integration

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