MNEs and Local Linkages: Evidence from Taiwanese Affiliates
Journal
World Development
Journal Volume
39
Journal Issue
4
Pages
633-647
Date Issued
2011
Author(s)
Liu B.J.
Abstract
This paper, using Taiwanese firms as a case study, has identified several factors affecting the formation of local linkages, which has important implications for the embeddedness of MNEs in the host countries. It shows that while the ownership structure, the motivation of overseas investment, and the autonomy given to affiliates are all important, the production networks and experience of affiliates in the host country also play crucial roles in creating local linkage. In addition, country-specific factors (e.g., culture and ethnic ties, the presence of foreign MNEs, and the supply of key components) may be significant forces leading to large local linkages. ? 2010 Elsevier Ltd.
Subjects
Asia; FDI; Local linkage; MNEs; Taiwan
Other Subjects
autonomy; foreign direct investment; industrial enterprise; ownership; Taiwan
Type
journal article