Delocalization and Development: Empirical Findings from Selected European Countries

Abstract

Viewing delocalization as a fairly complex phenomenon affecting firms, sectors, regions and countries, this study aims at analysing the various interconnections between delocalization and development. To do so, we have developed an elaborate conceptual framework where upgrading and embeddedness are pivotal. Viewing development as a product of firm or network strategies and actions, assets and institutions, we find firms involved in delocalization to have benefited. On the other hand, delocalization often implies a weakening of linkages in the home economy, while the transfer of knowledge and other intangible assets is often non-existent. Moreover, our framework allows for more macroscopic assessments, where outcomes are products of complex processes involving quite unique factors, such as history, civil society and policies.