The Determinants of Regional Sourcing by Multinational Manufacturing Firms: Evidence from Yorkshire and Humberside,UK

An examination of the factors influencing the extent of regional sourcing by multinational manufacturing firms using data collected by interview from 50 foreign- and UK-owned plants in Yorkshire and Humberside. The evidence shows that higher levels of regional sourcing are observed where certain demand characteristics coincide with strengths in the supply potential of the region. A 'corporate filter' reduces regional sourcing. There were no differences in regional sourcing between foreign- and UK-owned multinationals. The findings identify barriers to policy aspirations of increased regional sourcing and emphasize that any policy initiatives should target the plants of domestic, as well as foreign, multinational enterprises (MNE).