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Mobility and Economic Importance of Corporate Headquarters and Headquarter Functions: A Canadian Perspective

Someshwar Rao ()
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Someshwar Rao: Former Director of the Productivity and Competitiveness Analysis Directorate at Industry Canada

Transnational Corporations Review, 2015, vol. 7, issue 2, 128-147

Abstract: This paper examines the evolving nature, size and scope and the mobility of corporate headquarters and headquarter functions and assesses their economic importance to the host economies. Our research findings suggest that corporate headquarters rarely move. When they do, either mergers and acquisitions or relocation of their productions/sales centers are the main reasons behind the mobility. On the other hand corporate headquarter functions, such as R&D and business services are increasingly foot loose, in search of productivity improvements and cost savings. Our research also suggests that the overall economic impacts of headquarter mobility are small even under very optimistic assumptions about the multiplier (agglomeration) effects.

Keywords: Headquarters; TNCs; productivity; employment; R&D; Canada (search for similar items in EconPapers)
Date: 2015
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Handle: RePEc:oul:tncr09:v:7:y:2015:i:2:p:128-147