Sourcing Patterns of Foreign-owned Multinational Subsidiaries in Europe

Ana Teresa Tavares () and Stephen Young
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Ana Teresa Tavares: CEMPRE, Faculdade de Economia, Universidade do Porto
Stephen Young: Strathclyde International Business Unit, University of Strathclyde

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: This paper investigates the determinants of the international input sourcing propensities of foreign-owned multinational subsidiaries in four EU host countries. Major findings concern the impact of subsidiary roles and economic integration on international sourcing patterns. Regional and global integration are leading to a greater import-orientation among MNE subsidiaries, including Product Mandate firms which are assumed to be strongly embedded within host economies. The results cast serious doubts on the effectiveness of traditional criteria for investment attraction; and confirm that stimulating local sourcing is problematic. Specific policy implications are developed relating to the attraction of inward foreign direct investment and to corporate development policies.

Keywords: Multinational enterprises; Subsidiaries; Sourcing; Europe. (search for similar items in EconPapers)
JEL-codes: F15 F23 (search for similar items in EconPapers)
Pages: 25 pages.
Date: 2004-10
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Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:160

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