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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

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