Abstract
The article examines the extent to which foreign manufacturing firms in the UK promote productivity growth in the domestically owned manufacturing sector through their buying and supplying relationships. Evidence for intra- and inter-regional externalities from the presence of foreign manufacturing, and intraand inter-industry effects is brought to light. Externalities in the domestic sector are most noticeable where foreign manufacturing sells to domestic manufacturing. These externalities are, however, not wholly robust to different specifications of spatial dependence. The findings are positioned in a debate, which has tended to view backward (as opposed to forward) linkages from multinationals to domestically owned supply bases as a critical driver of indirect economic benefits. © RSAI 2004.
Original language | English |
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Pages (from-to) | 699-722 |
Number of pages | 24 |
Journal | Papers in Regional Science |
Volume | 83 |
Issue number | 4 |
DOIs | |
Publication status | Published - Oct 2004 |
Bibliographical note
The definitive version is available at www.blackwell-synergy.comKeywords
- foreign manufacturing
- input-output tables
- productivity spillovers
- spatial dependence