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Embedding the Multinationals? Institutions and the Development of Overseas Manufacturing Affiliates in Wales and North East England

  • N. A. Phelps
  • Danny Mackinnon
  • Ian Stone
  • Paul Braidford
Registered author(s):

    PHELPS N. A., MACKINNON D., STONE I. and BRAIDFORD P. (2003) Embedding the multinationals? Institutions and the development of overseas manufacturing affiliates in Wales and North East England, Reg. Studies 37 , 27-40. The impact of foreign direct investment (FDI) upon host regions is a topic of perennial interest within the fields of regional economics, industrial geography and regional development. Much of the early literature here draws negative conclusions regarding the wider indirect impacts of FDI on host regions, pointing to the branch plant syndrome. In light of significant processes of corporate restructuring and the build-up of host region institutional capacities, however, recent literature has claimed that the plants of multinational enterprises (MNEs) are becoming increasingly "embedded' in regional economies. Against this backdrop, this paper aims to provide a critical assessment of the regional "embeddedness' of FDI in Wales and the North East of England. Based upon an extensive survey of overseas-owned manufacturing affiliates in these regions, the paper examines key indicators of MNE embeddedness, and assesses the influence of regional agencies on the embedding process. In general, we find little evidence of increasing embeddedness while the effects of regional differences in institutional capacity on the embedding process appear to be somewhat limited. As such, we suggest that the idea of " extended enclaves' encapsulates some key dimensions of the relationships between MNEs and the economies of peripheral UK regions. PHELPS N. A., MACKINNON D., STONE I. et BRAIDFORD P. (2003) Ancrer les multinationales?: les institutions et le developpement des filiales industrielles etrangeres au pays de Galles et dans le nord-est d'Angleterre, Reg. Studies 37 , 27-40. Les retombees de l'investissement direct etranger (IDE) sur les zones d'accueil est un sujet d'inte ret perpetuel dans les domaines de l'economie re gionale, de la geographie industrielle et de l'amenagement du territoire. Dans une large mesure, la premiere documentation a ce sujet tire des conclusions negatives quant aux retombees indirectes importantes de l'IDE sur les zones d'accueil, faisant allusion au syndrome des etablissements. Cependant, a la lumiere de la restructuration d'entreprise et du developpement des capacites institutionnelles de la zone d'accueil, la documentation recente affirme que les etablissements des multinationales deviennent de plus en plus " ancrees' dans des economies regionales. Sur ce fond, cet article cherche a faire une critique de "l'ancrage' regional de l'IDE au pays de Galles et dans le nord-est d' Angleterre. A partir d'une enquete detaillee aupre s des filiales industrielles a capital etranger situees dans ces regions-la, cet article cherche egalement a examiner les indicateurs cle de l'ancrage des multinationales et a e valuer l'influence des assemblees regionales sur le processus d'ancrage. En regle generale, une augmentation du degre "d'ancrage' s'avere peu evidente alors que les effets des divergences regionales de la capacite institutionnelle sur le processus d'ancrage s'averent quelque peu limites. En tant que tel, on laisse supposer que la notion "d' enclaves elargies' embrasse quelques-uns des elements cle des rapports qui existent entre les multinationales et les economies des regions peripheriques du Royaume-Uni. PHELPS N. A., MACKINNON D., STONE I. und BRAIDFORD P. (2003) Verankerung der Multinationalen? Institutionen und die Entwicklung uberseeischer verarbeitender Tochtergesellschaften in Wales und Nordostengland, Reg. Studies 37 , 27-40. Die Auswirkung auslandischer Direktinvestierungen (foreign direct investment=FDI) auf Gastgeberregionen ist ein Thema, dass sich auf den Gebieten der regionalen Wirtschaften, Industriegeographie und regionalen Entwicklung immergrunen Interesses erfreut. In der fruhen Literatur wurde hier im Hinblick auf weiterreichende, indirekte Auswirkungen von FDI auf Gastgeberregionen oft negative Schlusse gezogen, indem sie auf das Zweigstellensyndrom hinwies. Angesichts bedeutender Vorgange auf dem Gebiete korporativer Umstrukturierung und vermehrter institutioneller Leistungfa higkeiten der Gastgeberregionen hat die Literatur jedoch kurzlich behauptet, dass die Niederlassungen multinationaler Unternehmen (MNE) immer fester in den Regionalwirtschaften "verankert' wurden. Vor diesem Hintergrund versucht dieser Aufsatz, eine kritische Beurteilung der regionalen " Verankerung' auslandischer Direktinvestition in Wales und im Nordosten Englands zu liefern. Die Arbeit stutzt sich auf ausgedehnte Untersuchungen in auslandischem Besitz befindlicher Tochterherstellerfirmen in diesen Regionen, pruft Hauptindikatoren der MNE Verankerung und beurteilt den Einfluss regionaler Agenturen auf den Verankerungsprozess. Allgemein gesprochen, finden sich wenig Anzeichen zunehmender "Verankerung', wa hrend die Wirkung regionaler Unterschiede in der Leistungsfahigkeit von Institutionen auf der Verankerungsprozess doch etwas beschrankt zu sein scheint. Als solcher wird vorgeschlagen, dass der Begriff "ausgedehnte Enklaven' mehrere Schlusseldimensionen der Beziehungen zwischen MNE und den Wirtschaften abgelegener Regionen des Vereinigten Konigreichs zusammenfasst.

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    Article provided by Taylor & Francis Journals in its journal Regional Studies.

    Volume (Year): 37 (2003)
    Issue (Month): 1 ()
    Pages: 27-40

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    Handle: RePEc:taf:regstd:v:37:y:2003:i:1:p:27-40
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