THE IMPACT OF A LARGE MULTINATIONAL ORGANIZATION ON A SMALL LOCAL ECONOMY

This paper is based on a research project undertaken for American Expr ess (AMEX) in Brighten which aimed to identify the economic impact of American Express on the local economy. A research methodology is emplo yed which inter alia utilizes concepts drawn from development economic s, notably, 'economic linkages' and 'enclave development', adapted to the requirements of the project. We use both quantitative data from th e firm's payroll and suppliers databases, and interview data from a va riety of sources to make a judgement about the impact of the firm upon the locality. We find there are both quantitative and qualitative lin ks with the rest of the economy. We try to measure both absolute and r elative impacts of the firm, by making use of different counter-factua l scenarios. We find a generally beneficial effect of the firm upon th e locality, in contrast to a number of other studies of mainly manufac turing plants in other regions.