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Multinational Companies and Linkages: Panel-Data Evidence for the Irish Electronics Sector

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  • Holger Gorg
  • Frances Ruane

Abstract

This paper analyses the extent and determinants of backward local linkages between multinational companies and domestic suppliers in the Irish electronics industry, and their effect on indirect employment generated in domestic supplier firms. Several models in recent literature show that linkages between firms can lead to positive effects on the development of indigenous industry, agglomerations, technology spill-overs and indirect employment generation. Our empirical analysis, using a uniquely generated firm-level panel data set, indicates that the extent of linkages is related in a non-linear fashion to the length of time that the firm is located in Ireland. In the context of the literature on the effects of linkages, we find empirical evidence consistent with the view that growth in employment in upstream supplier firms in electronics is linked to the development of downstream firms.

Suggested Citation

  • Holger Gorg & Frances Ruane, 2001. "Multinational Companies and Linkages: Panel-Data Evidence for the Irish Electronics Sector," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(1), pages 1-18.
  • Handle: RePEc:taf:ijecbs:v:8:y:2001:i:1:p:1-18
    DOI: 10.1080/13571510151075215
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    References listed on IDEAS

    as
    1. Blomstrom, Magnus & Kokko, Ari, 1998. " Multinational Corporations and Spillovers," Journal of Economic Surveys, Wiley Blackwell, vol. 12(3), pages 247-277, July.
    2. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 857-880.
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    4. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
    5. Gorg, H. & Strobl, E., 1999. "Multinational Companies and the entry of Indigenous Firms: Panel Data Evidence for Ireland," Papers 99/8, College Dublin, Department of Political Economy-.
    6. Ivan Turok, 1997. "Linkages in the Scottish Electronics Industry: Further Evidence," Regional Studies, Taylor & Francis Journals, vol. 31(7), pages 705-711.
    7. Rauch, James E. & Watson, Joel, 2003. "Starting small in an unfamiliar environment," International Journal of Industrial Organization, Elsevier, vol. 21(7), pages 1021-1042, September.
    8. Mark Casson & Nigel Wadeson, 1998. "Communication Costs and the Boundaries of the Firm," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 5(1), pages 5-27.
    9. 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 341-359, May.
    10. 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.
    11. repec:hhs:iuiwop:430 is not listed on IDEAS
    12. P N O'Farrell & B O'Loughlin, 1981. "New Industry Input Linkages in Ireland: An Econometric Analysis," Environment and Planning A, , vol. 13(3), pages 285-308, March.
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    14. McDermott, Philip, 1979. "Multinational Manufacturing Firms and Regional Development: External Control in the Scottish Electronics Industry," Scottish Journal of Political Economy, Scottish Economic Society, vol. 26(3), pages 287-306, November.
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