Multinational enterprises and regional development: An exploratory paper

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Abstract
Dunning J. H. and Yannopoulos G. N. (1976) Multinational enterprises and regional developments: an exploratory paper. Reg. Studies 10, 389–399. This paper is concerned with the role of the multinational enterprises in the spatial allocation of resources within nations. The controversies surrounding the activities of multinational enterprises as to their impact on regional development and their alleged undermining of government regional policies are examined by looking at the structural, organisational and product characteristics of the multinational firms in relation to those of indigenous multiplant firms. Our analysis shows that the response of multinational enterprises to the host of regional policy incentives crucially depends on a series of key variables that relate to enterprise and product characteristics of these firms. These characteristics are analysed in detail and their influence in determining the relative responsiveness of the multinational enterprise to regional policy incentives is individually examined.