Factors determining supply linkages between transnational corporations and local suppliers in ASEAN.
Mirza, Hafiz R. Giroud, Axele
Mirza, Hafiz R.
Giroud, Axele
Publication Date
2006
End of Embargo
Supervisor
Rights
Peer-Reviewed
Yes
Open Access status
closedAccess
Accepted for publication
Institution
Department
Awarded
Embargo end date
Collections
Additional title
Abstract
A significant potential beneficial impact of foreign direct investment arises from a foreign affiliate's propensity to purchase inputs from suppliers in the host economy. This issue is of particular interest where the host is a developing country and the linkage is likely to contribute to the development of local suppliers. We compare variations in local input linkages across four countries: Cambodia, Malaysia, Thailand and Viet Nam, all member countries of the Association of South-East Asian Nations (ASEAN). Using multiple linear regressions, our findings indicate that the degree of local input linkages is highest when foreign affiliates perform a strategic role in the transnational corporation network and are embedded in the host economy. Non-firm factors are also important determinants, especially the industry of investing firms and the existence of a supply base. Building on the findings, a series of policies to enhance supplier-foreign affiliate linkages are proposed.
Version
No full-text in the repository
Citation
Mirza, H. R. and Giroud, A. (2006). Factors determining supply linkages between transnational corporations and local suppliers in ASEAN. Transnational Corporations Journal. Vol. 15, No 3, 34pp.
Link to publisher’s version
Link to published version
Link to Version of Record
Type
Article