Linkages between Multinationals and Indigenous Firms: Evidence for the Electronics Sector in Ireland
AbstractThis paper analyses the concept of linkages and studies the development and the determinants of inter-firm linkages between electronics firms in Ireland and domestic sub-suppliers using firm level data for 1982 to 1995. We discuss the concept of inter-firm linkages and the effects of linkages. We argue that the concept of linkages developed by Hirschman (1958) is an inter-sectoral concept which can arise as a result of underlying inter-firm linkages. Our empirical analysis indicates that foreign-owned electronic firms in Ireland source, on average, 24 per cent of their inputs in Ireland, which compares favourably with an estimate for foreign firms in Scottish electronics industries. In an econometric estimation, using panel data techniques, we find that firms in the Irish electronics sector increase their backward linkages over time; that foreign firms have lower linkages than Irish-owned firms; and that large and expanding firms have lower linkages than other firms.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Trinity College Dublin, Department of Economics in its series Economics Technical Papers with number 9813.
Date of creation: 1998
Date of revision:
Find related papers by JEL classification:
- L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- R34 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Input Demand Analysis
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lopez-de-Silanes, Florencio & Markusen, James R. & Rutherford, Thomas F., 1996. "Trade policy subtleties with multinational firms," European Economic Review, Elsevier, vol. 40(8), pages 1605-1627, November.
- Richardson, Martin, 1993. "Content Protection with Foreign Capital," Oxford Economic Papers, Oxford University Press, vol. 45(1), pages 103-17, January.
- Lall, Sanjaya, 1978. "Transnationals, Domestic Enterprises, and Industrial Structure in Host LDCs: A Survey," Oxford Economic Papers, Oxford University Press, vol. 30(2), pages 217-48, July.
- Venables, Anthony J, 1996.
"Equilibrium Locations of Vertically Linked Industries,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 341-59, May.
- Anthony J. Venables, 1993. "Equilibrium Locations of Vertically Linked Industries," CEP Discussion Papers dp0137, Centre for Economic Performance, LSE.
- Venables, Anthony J., 1993. "Equilibrium Locations of Vertically Linked Industries," CEPR Discussion Papers 802, C.E.P.R. Discussion Papers.
- James R. Markusen & Anthony J. Venables, 1997.
"Foreign Direct Investment as a Catalyst for Industrial Development,"
NBER Working Papers
6241, National Bureau of Economic Research, Inc.
- Markusen, James R. & Venables, Anthony J., 1999. "Foreign direct investment as a catalyst for industrial development," European Economic Review, Elsevier, vol. 43(2), pages 335-356, February.
- repec:sae:niesru:v:160:y::i:1:p:76-86 is not listed on IDEAS
- repec:fth:iniesr:430 is not listed on IDEAS
- Leddin, A & Walsh, B, 1997. "Economic Stabilisation, Recovery, and Growth : Ireland 1979-1996," Papers 97/08, College Dublin, Department of Political Economy-.
- Krugman, Paul & Venables, Anthony J., 1994.
"Globalization and the Inequality of Nations,"
CEPR Discussion Papers
1015, C.E.P.R. Discussion Papers.
- Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," NBER Working Papers 5098, National Bureau of Economic Research, Inc.
- Krugman, Paul & Venables, Anthony J., 1995. "Globalization and the Inequality of Nations," Working Paper Series 430, Research Institute of Industrial Economics.
- Carl Davidson & Steven J. Matusz & Mordechai E. Kreinin, 1985. "Analysis of Performance Standards for Direct Foreign Investments," Canadian Journal of Economics, Canadian Economics Association, vol. 18(4), pages 876-90, November.
- P N O'Farrell & B O'Loughlin, 1981. "New industry input linkages in Ireland: an econometric analysis," Environment and Planning A, Pion Ltd, London, vol. 13(3), pages 285-308, March.
- Rodriguez-Clare, Andres, 1996. "Multinationals, Linkages, and Economic Development," American Economic Review, American Economic Association, vol. 86(4), pages 852-73, September.
- Stephen Roper & Amnon Frenkel, 2000.
"Different paths to success—the growth of the electronics sector in Ireland and Israel,"
Environment and Planning C: Government and Policy,
Pion Ltd, London, vol. 18(6), pages 651-665, December.
- Roper, Stephen & Frenkel, Amnon, 1999. "Different Paths to Success: The Growth of the Electronics Sector in Ireland and Israel," ERSA conference papers ersa99pa302, European Regional Science Association.
- Ana Tavares, 2002. "Multinational Subsidiary Evolution and Public Policy: Two Tales from the European Periphery," Journal of Industry, Competition and Trade, Springer, vol. 2(3), pages 195-213, September.
- Görg, H & Ruane, F, 1999. "Globalisation and Fragmentation: Evidence from the Electronics Industry in Ireland," Trinity Economics Papers 9911, Trinity College Dublin, Department of Economics.
- Crone, Mike & Roper, Stephen, 1999. "Knowledge Transfers from Multi-national Plants in Northern Ireland," ERSA conference papers ersa99pa053, European Regional Science Association.
- Narula,Rajneesh & Portelli,Brian, 2004. "Foreign direct investment and economic development: Opportunities and limitations from a developing country perspective," Research Memorandum 009, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Mary O'Sullivan, 2000. "The sustainability of industrial development in Ireland," Regional Studies, Taylor & Francis Journals, vol. 34(3), pages 277-290.
- Lall, Sanjaya & Narula,Rajneesh, 2004. "FDI and its role in economic development: Do we need a new agenda?," Research Memorandum 019, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Patricia Hughes).
If references are entirely missing, you can add them using this form.