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MNE Supply Linkages and the Local SME Sector: Evidence from Yorkshire and Humberside

Author

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  • M. Crone

    (Northern Ireland Economic Research Centre, Queen's University Belfast, 46-48 University Road, Belfast, BT7 1NJ. E-mail: m.crone@qub.ac.uk)

  • H. D. Watts

    (Department of Geography, University of Sheffield, Winter Street, Sheffield, S10 2TN, UK. E-mail: h.watts@sheffield.ac.uk)

Abstract

This paper draws on evidence from a new survey of large MNE-owned manufacturing plants in Yorkshire and Humberside and questions the expectation that MNE plants will stimulate the local SME sector though local sourcing of material and component inputs. MNE plants in Yorkshire and Humberside sourced less than 25 percent of their material and component inputs from the local region and less than two percent from local SMEs. Smaller MNE plants were more likely to source from local SMEs as were MNE plants searching for low technology inputs, in sectors such as mechanical engineering and metal goods. MNE plants in the chemicals and motor vehicle component sectors had few local SME suppliers

Suggested Citation

  • M. Crone & H. D. Watts, 2000. "MNE Supply Linkages and the Local SME Sector: Evidence from Yorkshire and Humberside," Local Economy, London South Bank University, vol. 15(4), pages 325-337, November.
    • Handle: RePEc:sae:loceco:v:15:y:2000:i:4:p:325-337
    DOI: 10.1080/02690940010010783
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    References listed on IDEAS

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    1. N A Phelps, 1993. "Contemporary Industrial Restructuring and Linkage Change in an Older Industrial Region: Examples from the Northeast of England," Environment and Planning A, , vol. 25(6), pages 863-882, June.
    2. Ann Markusen, 1996. "Sticky Places in Slippery Space: A Typology of Industrial Districts," Economic Geography, Taylor & Francis Journals, vol. 72(3), pages 293-313, July.
    3. Kevin Morgan, 1997. "The Learning Region: Institutions, Innovation and Regional Renewal," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 491-503.
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    Cited by:

    1. Liu, Bih Jane, 2011. "MNEs and Local Linkages: Evidence from Taiwanese Affiliates," World Development, Elsevier, vol. 39(4), pages 633-647, April.

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