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.
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Publisher Info
Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number
160.
Find related papers by 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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