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MNEs and Local Linkages: Evidence from Taiwanese Affiliates

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  • Liu, Bih Jane

Abstract

Summary This paper, using Taiwanese firms as a case study, has identified several factors affecting the formation of local linkages, which has important implications for the embeddedness of MNEs in the host countries. It shows that while the ownership structure, the motivation of overseas investment, and the autonomy given to affiliates are all important, the production networks and experience of affiliates in the host country also play crucial roles in creating local linkage. In addition, country-specific factors (e.g., culture and ethnic ties, the presence of foreign MNEs, and the supply of key components) may be significant forces leading to large local linkages.

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  • Liu, Bih Jane, 2011. "MNEs and Local Linkages: Evidence from Taiwanese Affiliates," World Development, Elsevier, vol. 39(4), pages 633-647, April.
    • Handle: RePEc:eee:wdevel:v:39:y:2011:i:4:p:633-647
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    5. Leiva, Juan Carlos & Monge Rodríguez, Ricardo & Rodríguez-Alvarez, Juan Antonio, 2017. "The impact on wages, employment and exports of backward linkages between multinational companies and SMEs," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    6. Kubny, Julia & Voss, Hinrich, 2014. "Benefitting from Chinese FDI? An assessment of vertical linkages with Vietnamese manufacturing firms," International Business Review, Elsevier, vol. 23(4), pages 731-740.
    7. Chrysovalantou Milliou & Apostolis Pavlou, 2020. "Foreign direct investment in vertically related markets," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(1), pages 284-320, February.
    8. Sheng Fang & Dean Xu & Lixin Colin Xu & Heba Shams, 2023. "Does FDI have a social demonstration effect in developing economies? Evidence based on the presence of women-led local firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(7), pages 1332-1350, September.

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    local linkage FDI MNEs Asia Taiwan;

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