Market Access Spillovers: An Empirical Approach to the Flagship Firm Effect
This paper intends to contribute to the knowledge on the externalities produced by a foreign industry within the host region of the investment. Particularly, this study focuses on the influence of internationalization strategies implemented by a foreign industry on the local territory when its workers install their own companies or are hired by local companies, and on the effect of imitation strategies within the local environment. This analysis reveals a positive correlation between the territorial strategy of the industry and the permeability of its organization, and also between the maturity of the investment, new market access strategies, and the local impact. On the other hand, the productive linkage established between local and foreign companies and the previous labor relationship of its owner or administrators influence the internationalization process.
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