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Backward Linkages (backward + linkage)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting60%
Humanities and Social Sciences40%

Selected Abstracts

Multinational Corporations and Patterns of Local Knowledge Transfer in Costa Rican High-Tech Industries

DEVELOPMENT AND CHANGE, Issue 3 2008
Elisa Giuliani
ABSTRACT Over recent decades, governments in industrializing countries have promoted policies to attract foreign investors, anticipating the benefits of technology transfer to host economies. During the 1990s, Costa Rica adopted an industrialization strategy based on attracting high-tech multinational companies (MNCs). Using an original survey of a sample of high-tech MNC subsidiaries, this article shows that the new wave of efficiency-seeking subsidiaries tend not to transfer knowledge to domestic firms even when they establish backward linkages with them. Instead, most of the knowledge transfer occurs between high-tech foreign subsidiaries. This has clear policy implications for host country governments. [source]

Ireland's Foreign-Owned Technology Sector: Evolving Towards Sustainability?

GROWTH AND CHANGE, Issue 3 2008
PATRICK COLLINS
ABSTRACT For some, Ireland's pursuit of an exogenous-led development model has proved to be the cornerstone of recent economic success. Others point to recent high-profile closures and argue that foreign-owned operations are attracted to Ireland solely because of the advantageous tax breaks and lucrative grants scheme offered by the Irish government. We pay tribute to both arguments by pushing the level of enquiry beyond that of supply and backward linkages to try and gauge the actual performance of affiliates themselves. This brings some interesting facets of the Irish foreign direct investment scene to light. We highlight complexity of process, attainment of broader investment remits, and the emergence of a managerial class as integral to the ability of affiliates to adapt to and exploit organisational change. By examining 10 case studies and making use of media searches and company interviews, we highlight evidence of Ireland's largest technology transnational corporation affiliates showing positive performance advances. With these movements come, what we term, increased nodal significance of Irish operations within the global production network of their corporations. We argue against policy and theories that see these movements as linear and provide evidence of how some Irish operations have leveraged control and gained significant regional and global remits that have resulted in their growing significance, both in the corporation and in the country in which they are based. In the same line we argue that embeddedness in terms of supply linkages does not fit the Irish case and instead employ the term "network anchoring" of affiliates as they increase their nodal weighting through increased mandates. [source]

Impact of international tourism on the Chinese economy

INTERNATIONAL JOURNAL OF TOURISM RESEARCH, Issue 5 2006
Jan Oosterhaven
Abstract Since 1990, international tourism to China has grown dramatically, as has the rest of the Chinese economy. Its impact on the Chinese economy is estimated for 1997, the last year for which sufficient input,output, social accounting and tourist expenditure data are available when the paper was written. With these data, a so-called type II input,output model is constructed, which enables to estimate direct, indirect and induced impacts. The results show that 1.64% of gross domestic product, 1.40% of household income and 1.01% of Chinese employment is dependent on international tourism. The differences are explained by the sectoral composition of the tourist expenditures, together with the sectoral differences in capital/labour ratios, labour productivity and backward linkages. Copyright © 2006 John Wiley & Sons, Ltd. [source]

Multinational companies, backward linkages, and labour demand elasticities

CANADIAN JOURNAL OF ECONOMICS, Issue 1 2009
Holger Görg
Abstract This paper investigates the link between nationality of ownership and wage elasticities of labour demand at the level of the plant. In particular, we examine whether labour demand in multinationals becomes less elastic with respect to the wage if the plant has backward linkages with the local economy. Our empirical evidence, based on a rich plant level dataset, shows that the extent of local linkages does indeed generally reduce the wage elasticity of labour demand. This result is economically important and holds for a number of different specifications. Ce mémoire étudie le lien entre la nationalité de la propriété et les élasticités de la demande de travail par rapport aux salaires au niveau de l'établissement. En particulier, on examine si la demande de travail dans les multinationales devient moins élastique par rapport aux salaires si l'établissement a des effets en amont sur l'économie locale. Les résultats, construits à partir d'une base de données très riche au niveau de l'établissement, montrent que l'importance des effets locaux en amont réduit l'élasticité de la demande de travail par rapport aux salaires. Ces résultats sont importants au plan économique et sont robustes pour un nombre de spécifications différentes. [source]