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MNEs and Local Linkages: Evidence from Taiwanese Affiliates

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  • Liu, Bih Jane

Abstract

Summary This paper, using Taiwanese firms as a case study, has identified several factors affecting the formation of local linkages, which has important implications for the embeddedness of MNEs in the host countries. It shows that while the ownership structure, the motivation of overseas investment, and the autonomy given to affiliates are all important, the production networks and experience of affiliates in the host country also play crucial roles in creating local linkage. In addition, country-specific factors (e.g., culture and ethnic ties, the presence of foreign MNEs, and the supply of key components) may be significant forces leading to large local linkages.

Suggested Citation

  • Liu, Bih Jane, 2011. "MNEs and Local Linkages: Evidence from Taiwanese Affiliates," World Development, Elsevier, vol. 39(4), pages 633-647, April.
  • Handle: RePEc:eee:wdevel:v:39:y:2011:i:4:p:633-647
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    References listed on IDEAS

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    Cited by:

    1. Jenkins, Mauricio & Arce, Ronald, 2016. "Do backward linkages in export processing zones increase dynamically? Firm-level evidence from Costa Rica," Journal of Business Research, Elsevier, vol. 69(2), pages 400-409.
    2. Franco, Chiara & Sanfilippo, Marco & Seric, Adnan, 2015. "What makes linkages "good" linkages? Firms, the investment climate and business support services in Vietnam," IOB Working Papers 2015.09, Universiteit Antwerpen, Institute of Development Policy (IOB).
    3. Ngoasong, Michael Zisuh, 2014. "How international oil and gas companies respond to local content policies in petroleum-producing developing countries: A narrative enquiry," Energy Policy, Elsevier, vol. 73(C), pages 471-479.
    4. Kubny, Julia & Voss, Hinrich, 2014. "Benefitting from Chinese FDI? An assessment of vertical linkages with Vietnamese manufacturing firms," International Business Review, Elsevier, pages 731-740.

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    Keywords

    local linkage FDI MNEs Asia Taiwan;

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