Working Paper: NBER ID: w13271
Authors: Deborah L. Swenson
Abstract: This paper studies the relationship between multinational firm proximity and the formation of new export connections by private Chinese exporters between 1997 and 2003. The results indicate that growth in the presence of multinational firms is positively associated with the formation of new trade by local Chinese firms. Further exploration suggests that information spillovers may drive this result, as the positive association due to own-industry multinational presence is particularly strong in contexts where information improvements may be the most helpful. Thus, it appears that a growing presence of multinational firms may enhance the export capabilities of local domestic firms.
Keywords: No keywords provided
JEL Codes: F1; F23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| formation of new trade connections by local firms (F12) | local export capabilities (F10) |
| contact with foreign-invested enterprises (F23) | new trade connections by local firms (F12) |
| multinational presence (F23) | local firms' integration into the international economy (F15) |
| increased competition and rising local production costs (L11) | negative effects of multinational presence (F64) |
| increase in the presence of own-industry multinational firms (F23) | formation of new trade connections by local firms (F12) |