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Comparing Outsourcing Patterns in Domestic and FDI Manufacturing Plants: Empirical Evidence from Spain

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  • Adelheid Holl
  • Rafael Pardo
  • Ruth Rama

Abstract

To fully understand the local linkages of Foreign Direct Investment (FDI) plants, we argue it would be useful to analyze the outsourcing patterns of such plants in comparison to domestic plants. Consequently, we examined 1031 industrial plants, both domestic and foreign, located in Spain. The FDI plants show patterns similar to those of domestic plants with regard to the level of outsourcing, the incidence of outsourced production on the companies’ total sales and the economic content of outsourcing relationships. Further, our results show that levels of embeddedness in the local and regional economy of FDI plants are not significantly different from domestic plants. However, FDI plants are highly concentrated spatially in the largest industrial agglomerations. For such plants, Barcelona not only seems a preferred site for location but also for contracting manufacturing tasks.

Suggested Citation

  • Adelheid Holl & Rafael Pardo & Ruth Rama, 2011. "Comparing Outsourcing Patterns in Domestic and FDI Manufacturing Plants: Empirical Evidence from Spain," European Planning Studies, Taylor & Francis Journals, vol. 20(8), pages 1335-1357, March.
    • Handle: RePEc:taf:eurpls:v:20:y:2011:i:8:p:1335-1357
    DOI: 10.1080/09654313.2012.680582
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    References listed on IDEAS

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    1. Lionel Artige & Rosella Nicolini, 2005. "Evidence on the Determinants of Foreign Direct Investment: The Case of Three European Regions," UFAE and IAE Working Papers 655.05, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    2. Mari Sako, 2005. "Outsourcing and Offshoring: Key Trends and Issues," Papers Presented at Global Meetings of the Emerging Markets Forum 2005outsourc, Emerging Markets Forum.
    3. Anthony Goerzen, 2005. "Networks and Location," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-51025-8, September.
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    Cited by:

    1. Adelheid Holl & Ruth Rama, 2014. "Foreign Subsidiaries and Technology Sourcing in Spain," Industry and Innovation, Taylor & Francis Journals, vol. 21(1), pages 43-64, January.

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