Regional Growth and Convergence in the UK: the Role of MNE Subsidiaries and Domestic Firms
Ioannis Bournakis (),
Marina Papanastassiou and
MPRA Paper from University Library of Munich, Germany
This paper explores the relative effects of Multinational Enterprises’ (MNEs) subsidiaries to domestic firms (DOMS) on regional productivity growth in the UK. We combine regional and firm level data to explore the relative importance of three key characteristics of Multinational Enterprises’ subsidiaries: R&D, intangible assets and exports. Our main results indicate that MNE subsidiaries are on average more R&D intensive and have a higher level of investment in intangibles which impact significantly on regional productivity growth. The results are shown not to be symmetric when we take into account the country of origin of MNE subsidiaries, the role of R&D, intangibles and exports depending on the country of origin of the parental MNE. Two key implications can be derived from our findings: (a) DOMS can sometimes be more advantageous for local development; (b) the contribution of MNEs subsidiaries to the regional economy depends on its degree of embeddedness in the local economy. These two findings can provide a large scope for regional policy making.
Keywords: Total Factor Productivity (TFP); Regions; Multinationals; Subsidiaries; Domestic Firms; R&D; Intangibles; Exports (search for similar items in EconPapers)
JEL-codes: F23 O47 R3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-geo, nep-ino, nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/68090/1/MPRA_paper_68090.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/84926/1/MPRA_paper_68090.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/84926/8/MPRA_paper_84926.pdf revised version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:68090
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().