Branch plant economy

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A branch plant economy is an economy that hosts many branch plants (i.e. factories or firms near the base of a supply chain/command chain), but does not host headquarters. [1] [2] In particular, the term was used in arguments that countries must develop independent companies, as a form of economic nationalism, to create better jobs and avoid having managerial positions filled only by corporate workers from outside the country. [1]

The term was used in the 1970s to describe Canadian reliance on US headquartered corporations or Scottish reliance on English-headquartered corporations [1] but may have fallen out of mainstream use.[ citation needed ] Some opinion pieces still use the terminology to decry reliance on outside states, especially with regards to Canada’s relationship with the United States. [3] [4]

References

  1. 1 2 3 Sonn, Jung Won; Lee, Dongheon (2012). "Revisiting the Branch Plant Syndrome: Review of Literature on Foreign Direct Investment and Regional Development in Western Advanced Economies". International Journal of Urban Sciences. 16 (3): 243–259. doi:10.1080/12265934.2012.733589. ISSN   2161-6779. S2CID   153679665.
  2. Rogers, Alisdair; Castree, Noel; Kitchin, Rob (2013-09-19), "branch plant economies" , A Dictionary of Human Geography, Oxford University Press, doi:10.1093/acref/9780199599868.001.0001, ISBN   978-0-19-959986-8 , retrieved 2024-02-06
  3. Crane, David (21 August 2023). "Canada cannot rely on a branch-plant strategy for the future". The Hill Times. Retrieved 2024-04-10.
  4. Silcoff, Sean (2016-06-17). "Microsoft reminds us that Canada is still a branch-plant economy". The Globe and Mail. Retrieved 2024-04-10.