Multinational Corporations and Local Content Policy: Towards a New Equilibrium

Multinational corporations operate beyond state borders and the need to regulate them has been made apparent by documented human rights violations, as well as environmental encroachments. This article considers two types of measures: (1) those that have been adopted by multinational corporations the...

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Main Author: A. Crowley-Vigneau
Format: Article
Language:English
Published: Ассоциация независимых экспертов «Центр изучения кризисного общества» (in English: Association for independent experts “Center for Crisis Society Studies”) 2020-12-01
Series:Контуры глобальных трансформаций: политика, экономика, право
Subjects:
Online Access:https://www.ogt-journal.com/jour/article/view/701
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spelling doaj-28de68124cd14f909c4c6f6738487cf52021-08-31T06:10:30ZengАссоциация независимых экспертов «Центр изучения кризисного общества» (in English: Association for independent experts “Center for Crisis Society Studies”)Контуры глобальных трансформаций: политика, экономика, право2542-02402587-93242020-12-01136516410.23932/2542-0240-2020-13-6-3518Multinational Corporations and Local Content Policy: Towards a New EquilibriumA. Crowley-Vigneau0University of Reading, Whiteknights; Moscow State Institute of International Relations (MGIMO University)Multinational corporations operate beyond state borders and the need to regulate them has been made apparent by documented human rights violations, as well as environmental encroachments. This article considers two types of measures: (1) those that have been adopted by multinational corporations themselves such as Corporate Social Responsibility initiatives and (2) those developed by host states with a focus on Local Content policy measures. Going beyond the idea of regulating corporations, Local Content policy measures are designed to act as a growth multiplier by developing linkages and involving local populations in the production process to create a spillover effect on the local or national economy. The author reviews the advantages and risks, associated with crafting such policies, and argues that demand for such measures is on the rise, not just in high value-added industries but also in other spheres. Indeed, while Local Content policies may present some disadvantages, restricting foreign contributions to the production process in an attempt to cultivate local economic linkages, their explicit formulation offers a high degree of clarity to international investors, which could facilitate and regularize the activities of multinational corporations.https://www.ogt-journal.com/jour/article/view/701multinational corporationslocal content policyeconomic linkagesinternational tradeworld trade organizationoil and gas industry
collection DOAJ
language English
format Article
sources DOAJ
author A. Crowley-Vigneau
spellingShingle A. Crowley-Vigneau
Multinational Corporations and Local Content Policy: Towards a New Equilibrium
Контуры глобальных трансформаций: политика, экономика, право
multinational corporations
local content policy
economic linkages
international trade
world trade organization
oil and gas industry
author_facet A. Crowley-Vigneau
author_sort A. Crowley-Vigneau
title Multinational Corporations and Local Content Policy: Towards a New Equilibrium
title_short Multinational Corporations and Local Content Policy: Towards a New Equilibrium
title_full Multinational Corporations and Local Content Policy: Towards a New Equilibrium
title_fullStr Multinational Corporations and Local Content Policy: Towards a New Equilibrium
title_full_unstemmed Multinational Corporations and Local Content Policy: Towards a New Equilibrium
title_sort multinational corporations and local content policy: towards a new equilibrium
publisher Ассоциация независимых экспертов «Центр изучения кризисного общества» (in English: Association for independent experts “Center for Crisis Society Studies”)
series Контуры глобальных трансформаций: политика, экономика, право
issn 2542-0240
2587-9324
publishDate 2020-12-01
description Multinational corporations operate beyond state borders and the need to regulate them has been made apparent by documented human rights violations, as well as environmental encroachments. This article considers two types of measures: (1) those that have been adopted by multinational corporations themselves such as Corporate Social Responsibility initiatives and (2) those developed by host states with a focus on Local Content policy measures. Going beyond the idea of regulating corporations, Local Content policy measures are designed to act as a growth multiplier by developing linkages and involving local populations in the production process to create a spillover effect on the local or national economy. The author reviews the advantages and risks, associated with crafting such policies, and argues that demand for such measures is on the rise, not just in high value-added industries but also in other spheres. Indeed, while Local Content policies may present some disadvantages, restricting foreign contributions to the production process in an attempt to cultivate local economic linkages, their explicit formulation offers a high degree of clarity to international investors, which could facilitate and regularize the activities of multinational corporations.
topic multinational corporations
local content policy
economic linkages
international trade
world trade organization
oil and gas industry
url https://www.ogt-journal.com/jour/article/view/701
work_keys_str_mv AT acrowleyvigneau multinationalcorporationsandlocalcontentpolicytowardsanewequilibrium
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