The Relationship Between Foreign Direct Investment and a Regional Industrial System: An Analysis of Interregional and Intra-Corporation Linkages of Foreign-Owned Manufacturing Establishments
O Huallachain, Breandan
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https://hdl.handle.net/2142/70639
Description
Title
The Relationship Between Foreign Direct Investment and a Regional Industrial System: An Analysis of Interregional and Intra-Corporation Linkages of Foreign-Owned Manufacturing Establishments
Author(s)
O Huallachain, Breandan
Issue Date
1982
Department of Study
Geography
Discipline
Geography
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Geography
Abstract
The key to understanding the nature of a regional system lies in the functional and spatial character of the economic linkages which connect its many economic units. In the present era, the problem is further complicated by the fact that many sectors may be subdivisions of large corporations, control of which lies outside the region. This externality can be of a national or multinational character, the latter being central to this thesis.
In recent years, there has been a good deal of discussion concerning the relationship between characteristics of foreign-owned plants and the structure of their interindustry and interregional relationships. Much of this discussion has focused on the question of whether certain technological characteristics of the plant such as operations technology and capital/labor ratio, and characteristics such as length of operation in the region, sector, nationality, and method of entry into the economy can be used to explain variations in foreign-owned plants' functional and spatial linkage patterns.
This thesis addresses the issue of the appropriate geographical scale at which deterministic models used to test such relationships should be implemented. In other words, does the significance of a particular model change as the size of the region in which the linkage occurs in enlarged? In addition, are some variables good predictors of linkage behavior at one level of geographical resolution and insignificant at another?
A related issue addressed is whether we can model one type of linkage more successfully than another. Interindustry linkages may be divided into a number of categories, backward and forward interregional and backward and forward intra-corporation. A central argument is that it is highly likely that the determinants of any one of these linkages are not the same for the others.
Data collected from a sample of foreign-owned firms in the state of Illinois were used to test these hypotheses.
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