Branch plant economy

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. 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. ^ a b c 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.
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