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Analysis of secondary effects and relations between transnational corporations and local firms

Abstract

Purpose – to study how transnational corporations can contribute to solving economic problems, by establishing links with local actors and how these links can influence the improvement of economic growth opportunities in host countries.

Methodology – as the main research tools were used deduction, also conducted deep interview with the representatives of a subsidiary of a large French multinationals in Kazakhstan. The study used both primary and secondary data, secondary data were collected using desk studies.

Originality/value – linkages studies are important for policymakers in developing countries to attract transnational corporations to the local economy. In particular, firms that have feedbacks with suppliers need to spread knowledge and skills to help suppliers upgrade their technologies and skills. Firms seeking to do business in emerging economies will also benefit from research as an emphasis on a more collaborative approach with local authorities to incorporate sustainable goals into corporate social responsibility.

Findings – based on the previous researches revealed that the activity of the transnational corporation has a positive effect on the development of local subjects of the market.

About the Authors

G. Zhanatauova
Narxoz University
Kazakhstan

Gulden Zhanatauova, PhD student

Almaty



L. Baimagambetova
Narxoz University
Kazakhstan

Lyazzat Baimagambetova, Candidate of economic sciences, associate professor

Almaty



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Review

For citations:


Zhanatauova G., Baimagambetova L. Analysis of secondary effects and relations between transnational corporations and local firms. Central Asian Economic Review. 2018;(1):82-92. (In Russ.)

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