The Impact of Multinational and Domestic Enterprises on Regional Productivity: Evidence from the UK

Bournakis, Ioannis and Papanastassiou, Marina and Pitelis, Christos (2015): The Impact of Multinational and Domestic Enterprises on Regional Productivity: Evidence from the UK. Published in: Regional Studies

Abstract

The paper explores the effects of Multinational Enterprises (MNEs) and Domestic Enterprises (DOMEs), respectively, on regional productivity in the case of UK regions. Our empirical evidence shows that the more intensive in terms of R&D and intangibles MNEs, have a stronger effect on regional productivity than DOMEs. However, when we control for the origin of the MNEs, we find that DOMEs can outperform MNEs from certain countries. We submit that regions that lag behind can absorb the intangible assets of DOMEs more readily; and that MNE strategies may not be always aligned to the needs of host regions.

• Item Type: MPRA Paper
• Language: English
• Keywords: Total Factor Productivity (TFP), Regions, Subsidiaries, Domestic Firms, R&D, Intangibles
• Subjects: F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location

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