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

This paper is based on a research project undertaken for American Express (AMEX) in Brighten which aimed to identify the economic impact of American Express on the local economy. A research methodology is employed which inter alia utilizes concepts drawn from development economics, notably, 'economic linkages' and 'enclave development', adapted to the requirements of the project. We use both quantitative data from the firm's payroll and suppliers databases, and interview data from a variety of sources to make a judgement about the impact of the firm upon the locality. We find there are both quantitative and qualitative links with the rest of the economy. We try to measure both absolute and relative impacts of the firm, by making use of different counter-factual scenarios. We find a generally beneficial effect of the firm upon the locality, in contrast to a number of other studies of mainly manufacturing plants in other regions.