No / A significant potential beneficial impact of foreign direct investment arises from a foreign affiliate's propensity to purchase inputs from suppliers in the host economy. This issue is of particular interest where the host is a developing country and the linkage is likely to contribute to the development of local suppliers. We compare variations in local input linkages across four countries: Cambodia, Malaysia, Thailand and Viet Nam, all member countries of the Association of South-East Asian Nations (ASEAN). Using multiple linear regressions, our findings indicate that the degree of local input linkages is highest when foreign affiliates perform a strategic role in the transnational corporation network and are embedded in the host economy. Non-firm factors are also important determinants, especially the industry of investing firms and the existence of a supply base. Building on the findings, a series of policies to enhance supplier-foreign affiliate linkages are proposed.
| Identifer | oai:union.ndltd.org:BRADFORD/oai:bradscholars.brad.ac.uk:10454/3287 |
| Date | January 2006 |
| Creators | Mirza, Hafiz R., Giroud, Axele |
| Source Sets | Bradford Scholars |
| Language | English |
| Detected Language | English |
| Type | Article, No full-text in the repository |
| Relation | http://www.unctad.org/Templates/webflyer.asp?docid=8167&intItemID=2926¿=1 |
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