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Foreign-Owned Firms and Regional—Functional Specialization

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  • J W Harrington Jr
  • D J Barnas

Abstract

It is hypothesized that the subnational, interregional location of foreign direct investment is influenced by the country of origin, the industry, and the specific functions of the investment. The authors studied these characteristics of 1163 foreign-owned business establishments in New York State, comparing them with the location, industry specialization, and occupational structure of five regions of New York State. Foreign-owned businesses take full part in the spatial division of activities across the state. Indeed, in some cases the special needs of foreign-owned business have led the specialization of regions' industry and activity mixes. Where a region's sectoral or activity mix is not greatly reinforced by the foreign-owned activities in the region, it is usually because of the intervening effects of source-country specialization or source-country locational proclivity.

Suggested Citation

  • J W Harrington Jr & D J Barnas, 1988. "Foreign-Owned Firms and Regional—Functional Specialization," Environment and Planning A, , vol. 20(7), pages 937-952, July.
    • Handle: RePEc:sae:envira:v:20:y:1988:i:7:p:937-952
    DOI: 10.1068/a200937
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    References listed on IDEAS

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    1. Wi Saeng Kim & Esmeralda O Lyn, 1987. "Foreign Direct Investment Theories, Entry Barriers and Reverse Investments in U.S Manufacturing Industries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 18(2), pages 53-66, June.
    2. Dunning, John H, 1979. "Explaining Changing Patterns of International Production: In Defence of the Eclectic Theory," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 269-295, November.
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