LOCAL INPUT LINKAGES - A COMPARISON OF FOREIGN-OWNED AND DOMESTIC MANUFACTURERS IN GEORGIA AND SOUTH-CAROLINA

Input purchasing patterns of foreign-owned and domestic manufacturers were compared to determine if local economic impacts varied by country of ownership. Input purchasing data were obtained from a 1990 survey of South Carolina and Georgia manufacturers. Tobit estimation results indicate nonmetro foreign-owned firms had significantly higher propens ities to purchase inputs in-county than domestic branch plants located in nonmetro countries. No significant differences existed between the input purchase propensities of metro domestic and foreign-owned manuf acturers. However, foreign-owned firms were disproportionately represe nted in industries with relatively weak indirect and induced effects o n the local economies. Relatively strong overall impacts may not be as sociated with the relatively large intial input purchases of foreign-o wned firms.