Cluster or capture? Manufacturing foreign direct investment, external economies and agglomeration

Abstract

Manufacturing foreign direct investment, external economies and agglomeration, Regional Studies. This paper reviews the nature and significance of external economies associated with multinational enterprise (MNE) participation in the manufacturing industries of host economies. It argues that the balance of forces of internalization and externalization is currently skewed towards the former and the interests of MNEs rather than the latter and the interests of local and national communities and governments. A stylized comparison of developmental and competition state interventions in relation to MNEs and their foreign direct investment (FDI) suggests that in the absence of co-ordinated interve..