Changing relationships between multinational companies and their host regions? A case study of Aberdeen and the international oil industry

There has been a revival of interest in recent years in the relationships b etween multinational corporations (hereafter MNCs) and the host regions in which they operate. The branch plant thesis which generally views inward in vestment by MNCs in a negative light - as reinforcing power relations betwe en core and peripheral regions - has been challenged, with the suggestion t hat such developments can play a key role in linking up local economies to important flows of knowledge and information in a global economy. It has al so been suggested that MNC branch plant activities are in practice often up graded over time, leading to the development of important competitive advan tage's for host regions. In this paper, such claims are investigated throug h a case study of the Aberdeen oil region in the north east of Scotland. Th e changing position of Aberdeen within the oil industry's corporate divisio n of labour is evaluated in terms of the wider theoretical debate.