Globalisation, multinational companies, and regional well-being

In recent years, a debate on the 'geography of discontent' emerged in the US and Europe, evidenced by the populist vote. Dissatisfaction, rooted in anti-globalisation sentiments, particularly affects areas with intense EU trade links and a significant presence of foreign multinational companies (MNCs), as seen in the pro-Brexit vote. This underscores the need to incorporate global exposure in life satisfaction discussions, focusing on MNCs as stable actors in global markets. The activities of MNCs impact their locations economically, socially, environmentally, and institutionally, exerting an influence on the quality of life and well-being of residents. The net impact of MNCS on local well-being can be positive if, across all domains, the total benefits outweigh the costs or negative in the opposite situation. This paper examines the relationship between regional subjective well-being (SWB) and the presence of MNCs of 190 NUTS 2 regions across 24 European countries during 2012–2016. The dataset considers average life satisfaction from the European Social Survey and MNCs from Orbis-Bureau Van Dijk. Findings indicate that, on average, the presence of MNCs in EU regions is associated with lower levels of SWB, confirming the negative impact of globalisation and overall discontent.