Changing relationships between multinational companies and their host regions? A case study of Aberdeen and the international oil industry

Abstract

There has been a revival of interest in recent years in the relationships between multinational corporations (hereafter MNCs) and the host regions in which they operate. The branch plant thesis which generally views inward investment by MNCs in a negative light — as reinforcing power relations between core and peripheral regions — has been challenged, with the suggestion that such developments can play a key role in linking up local economies to important flows of knowledge and information in a global economy. It has also been suggested that MNC branch plant activities are in practice often upgraded over time, leading to the development of important competitive advantages for host regions. In this paper, such claims are investigated through a case study of the Aberdeen oil region in the north east of Scotland. The changing position of Aberdeen within the oil industry's corporate division of labour is evaluated in terms of the wider theoretical debate.

Key words:

• multinational companies
• host regions
• learning regions
• oil industry

Notes

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