Yes as long as file will be accessible to server from local machine, file listener should be able to pick and process the file. Folder should have read and write permissions.
Identify a directory in which the listener looks for input files. Listener requests require read and write access to this directory.
This field supports the Global Resource Settings syntax (=PageName.PropertyName). The default property name for this field is pySourceLocation. For more information, see Using the Global Resource Settings feature.