Linkages and foreign direct investment

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Abstract
Stewart J. C. (1976) Linkages and foreign direct investment, Reg. Studies 10, 245–258. This paper describes a study of linkages in a random sample of native and foreign firms in the Western part of Ireland. A method of measuring linkages is developed and compared with that of Hirschman. The method developed is then applied to the regional sample. The paper argues that native firms have higher backward and forward linkages than foreign firms, and that foreign firms show little sign of developing further linkages. A possible explanation for this linkage pattern is given in terms of the discouragement to the development of linkages through exempting profits from exports from tax, and the integrated operations of multinational firms.

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