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Selling global, buying local? What determines the sourcing patterns of multinational plants in Ireland?

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Listed:
  • Nola Hewitt-Dundas
  • Bernadette Andreosso-O'callaghan
  • Mike Crone
  • John Murray
  • Stephen Roper

Abstract

Hewitt-Dundas N., Andreosso-O'Callaghan B., Crone M., Murray J. and Roper S. (2005) Selling global, buying local? What determines the sourcing patterns of multinational plants in Ireland?, Regional Studies 39 , 225-239. Multinational enterprises (MNEs) have played an important, if not crucial, role in the recent development of the economy of Ireland, both North and South. This paper compares the extent to which MNE plants, North and South, are integrated into their host economies through local sourcing. This is important both in terms of the direct effect on local demand and because local trading relationships provide a medium for technology transfer and supplier development. Levels of local sourcing, North and South, have diverged sharply over the last 15 years. In the South, local supply chains have grown stronger with MNE plants now purchasing around 21% of their material inputs from within the country. In the North, by contrast, local supply chain linkages have become weaker with only around 11% of MNE inputs now sourced from within the region. Strong asymmetries are also identified in cross-border sourcing. Northern MNE plants spend an average of £ 2.4 million per annum in the South, while Southern MNE plants spend an average of only £ 0.4 million per annum in the North. Differences in the characteristics of MNE plants, North and South, account for only one-quarter of the difference between the Southern and Northern levels of local sourcing. Supply-side issues - related primarily to availability - seem likely to explain the majority of the remainder.

Suggested Citation

  • Nola Hewitt-Dundas & Bernadette Andreosso-O'callaghan & Mike Crone & John Murray & Stephen Roper, 2005. "Selling global, buying local? What determines the sourcing patterns of multinational plants in Ireland?," Regional Studies, Taylor & Francis Journals, vol. 39(2), pages 225-239.
  • Handle: RePEc:taf:regstd:v:39:y:2005:i:2:p:225-239
    DOI: 10.1080/003434005200060072
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    References listed on IDEAS

    as
    1. Barry, Frank & Bradley, John, 1997. "FDI and Trade: The Irish Host-Country Experience," Economic Journal, Royal Economic Society, vol. 107(445), pages 1798-1811, November.
    2. Crone, Mike & Roper, Stephen, 1999. "Knowledge Transfers from Multi-national Plants in Northern Ireland," ERSA conference papers ersa99pa053, European Regional Science Association.
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    Cited by:

    1. Hewitt-Dundas, Nola & Roper, Stephen, 2002. "Closing the knowledge gap in Irish manufacturing - a north-south comparison," ERSA conference papers ersa02p382, European Regional Science Association.
    2. Qiantao Zhang & Niall G. MacKenzie & Dylan Jones-Evans & Robert Huggins, 2016. "Leveraging knowledge as a competitive asset? The intensity, performance and structure of universities’ entrepreneurial knowledge exchange activities at a regional level," Small Business Economics, Springer, vol. 47(3), pages 657-675, October.
    3. Alice Civera & Davide Donina & Michele Meoli & Silvio Vismara, 2020. "Fostering the creation of academic spinoffs: does the international mobility of the academic leader matter?," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 439-465, June.
    4. Petr Pavlínek & Pavla Žížalová, 2016. "Linkages and spillovers in global production networks: firm-level analysis of the Czech automotive industry," Journal of Economic Geography, Oxford University Press, vol. 16(2), pages 331-363.

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    More about this item

    Keywords

    Multinationals; Ireland; Supply chain; Sourcing; Multinationales; Irlande; Chaine d'approvisionnement; Approvisionnement; Multinationale; Unternehmen; Irland; Lieferketten; Quellen; Multinacionales; Irlanda; Cadena de abastecimiento; Encadenamiento con proveedores; JEL classifications: F23; L60; R34;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R34 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Input Demand Analysis

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