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Foreign direct investment and local linkages: An empirical investigation

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  • Joanna Scott-Kennel

    (Victoria University of Wellington)

Abstract

Abstract Abstract and Key Results This paper investigates the quantity and quality of indirect, transactional and collaborative linkages between foreign affiliates and domestic firms based in New Zealand. Seven clusters of affiliates are differentiated by linkage formation behaviour. Only fourteen percent of affiliates actively engaged in a broad spectrum of linkages, including alliances. Thirty-nine percent appear limited to demonstration and competition effects. Researchers and policy makers should recognise FDI heterogeneity with regard to impact on domestic industries. The results find competitive influence, levels of competition, motives for investment, business activity, technology transfer, age and ownership form are significantly associated with linkage clusters.

Suggested Citation

  • Joanna Scott-Kennel, 2007. "Foreign direct investment and local linkages: An empirical investigation," Management International Review, Springer, vol. 47(1), pages 51-77, February.
  • Handle: RePEc:spr:manint:v:47:y:2007:i:1:d:10.1007_s11575-007-0004-6
    DOI: 10.1007/s11575-007-0004-6
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    References listed on IDEAS

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    Cited by:

    1. Sajid Anwar & Sizhong Sun, 2015. "Foreign direct investment in R&D and domestic entrepreneurship in China's manufacturing industries," Applied Economics, Taylor & Francis Journals, vol. 47(16), pages 1633-1651, April.
    2. repec:spr:manint:v:49:y:2009:i:1:d:10.1007_s11575-008-0125-6 is not listed on IDEAS
    3. repec:ags:afjecr:274741 is not listed on IDEAS
    4. Muhammad Mustafa Raziq & Martin Perry, 2012. "Foreign direct investment in New Zealand: Does it justify negative assessment?," Regional Science Policy & Practice, Wiley Blackwell, vol. 4(2), pages 155-164, June.
    5. repec:spr:manint:v:49:y:2009:i:1:d:10.1007_s11575-008-0123-8 is not listed on IDEAS
    6. repec:eee:iburev:v:27:y:2018:i:6:p:1250-1258 is not listed on IDEAS
    7. repec:spr:manint:v:54:y:2014:i:2:d:10.1007_s11575-013-0185-0 is not listed on IDEAS

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