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External Control and Regional Development: The Case of Scotland

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  • J R Firn

    (Department of Social and Economic Research, University of Glasgow, Scotland)

Abstract

The purpose of the paper is to examine some recent evidence on the degree and type of external ownership and control that exists in the manufacturing sector of the Scottish economy. Definitions of external control are discussed, and its incidence in Scotland is shown to vary widely between industrial sectors; between different sizes of manufacturing enterprise; between different types of enterprise organisation; and between the different subregions of Scotland. The theoretical and policy implications of the Scottish situation, where nearly 60 per cent of the ownership and control of manufacturing employment lies in other regions of the United Kingdom and overseas, are discussed, and areas for future research outlined. It is argued that this factor is one of vital importance for the understanding of the processes and constraints of regional economic development, and that its neglect has contributed to much of the dissatisfaction expressed about the achievements of postwar British regional development-policy. The paper concludes that the development of a high level of control is not in the long-term economic interests of Scotland.

Suggested Citation

  • J R Firn, 1975. "External Control and Regional Development: The Case of Scotland," Environment and Planning A, , vol. 7(4), pages 393-414, June.
    • Handle: RePEc:sae:envira:v:7:y:1975:i:4:p:393-414
    DOI: 10.1068/a070393
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    References listed on IDEAS

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    1. Cameron, Gordon C, 1971. "Economic Analysis for a Declining Urban Economy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 18(3), pages 315-345, November.
    2. Morgenstern, Oskar, 1972. "Thirteen Critical Points in Contemporary Economic Theory: An Interpretation," Journal of Economic Literature, American Economic Association, vol. 10(4), pages 1163-1189, December.
    3. Richard R. Nelson, 1972. "Issues and Suggestions for the Study of Industrial Organization in a Regime of Rapid Technical Change," NBER Chapters, in: Economic Research: Retrospect and Prospect, Volume 3, Policy Issues and Research Opportunities in Industrial Organization, pages 34-58, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Petr Pavlínek & Jan Ženka, 2016. "Value creation and value capture in the automotive industry: Empirical evidence from Czechia," Environment and Planning A, , vol. 48(5), pages 937-959, May.
    2. Petr Pavlínek, 2012. "The Internationalization of Corporate R&D and the Automotive Industry R&D of East-Central Europe," Economic Geography, Clark University, vol. 88(3), pages 279-310, July.
    3. Dimitratos, Pavlos & Liouka, Ioanna & Young, Stephen, 2009. "Regional location of multinational corporation subsidiaries and economic development contribution: Evidence from the UK," Journal of World Business, Elsevier, vol. 44(2), pages 180-191, April.
    4. Meng-Chun Liu & Shin-Horng Chen, 2003. "International R&D Deployment and Locational Advantage: A Case Study of Taiwan," NBER Working Papers 10169, National Bureau of Economic Research, Inc.
    5. Zoltan J. Acs & David J. Brooksbank & Colm O'Gorman; & David Pickernell & Siri Terjesen, 2012. "The knowledge spillover theory of entrepreneurship: an application to foreign direct investment," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 15(2), pages 237-261.
    6. Filip De Beule, 2011. "Localization, Globalization and Networks of foreign Subsidiaries," Working Papers id:4500, eSocialSciences.
    7. Crone, Mike & Roper, Stephen, 1999. "Knowledge Transfers from Multi-national Plants in Northern Ireland," ERSA conference papers ersa99pa053, European Regional Science Association.
    8. Sara Cruz & Aurora Teixeira, 2010. "The Evolution of the Cluster Literature: Shedding Light on the Regional Studies-Regional Science Debate," Regional Studies, Taylor & Francis Journals, vol. 44(9), pages 1263-1288.
    9. Petr Pavlínek & Pavla Žížalová, 2016. "Linkages and spillovers in global production networks: firm-level analysis of the Czech automotive industry," Journal of Economic Geography, Oxford University Press, vol. 16(2), pages 331-363.
    10. Chia‐Wen Lee & Roger Hayter & David W. Edgington, 2010. "Large And Latecomer Firms: The Taiwan Semiconductor Manufacturing Company And Taiwan'S Electronics Industry," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 101(2), pages 177-198, April.

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