The locally embedded multinational and institutional capture

Summary Recent innovations in corporate organization have seen a growing body of literature entertain the idea that internationally mobile investment may be becoming more attached to local economies. Increasingly, these corporate dynamics are being met by national and sub-national initiatives to attract and embed multinationals This paper explores the implications of this convergence of corporate and institutional dynamics primarily at the local, sub-national scale. Recognition of the highly politicized nature of MNE-institution relations at the sub-national scale raises questions over the efficacy of sub-national institutional capacity in the attraction and development of FDI and highlights the prospect of some form of capture of sub-national institutional capacity.