This paper examines the scale and the scope of foreign-owned subsidiaries' local impact measured mainly by multiplier effects. Criticizing the political economy of offshoring from a host country perspective and the notion of “cathedrals in the desert”, the authors attempt to compare and...

This article introduces the main themes of the special issue on the role of business service foreign investment in Central and Eastern Europe and its propensity to upgrade regions and localities. The debate is firmly set in the context of an increasing emphasis on the knowledge economy. We point...