This research examines the regional impact of multinational corporation to peripheral area in emerging economy, focusing on the development of local industry and the changes in administrative level of the local government. In Primorye Province,Russia, the automobile assembly project was launched in 2009 and the only operative project is conducted by MAZDA SOLLERS Manufacturing Rus.
Regardless of the economical benefits to assemble automobiles in Primorye Province, it is suggested that the production is not necessarily based on the market principle as it is largely dependent on the preferential treatment by Russian central government. Moreover, the regional impact in the local industry remains limited because of the difficulty for automotive parts firms to expand its business and the weak relationship between the local firms. On the other hand,it was observed that the administration of Primorye Province took the initiative toward the Russian central government in pursuit of favorable production environment, experiencing the consecutive three different periods; the stage of development, entry and negotiation.
This implies that the multinational corporation operating in peripheral area helps the local government have the initiative toward the central government.
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