Wednesday, 10 October 2007

Multinationals and the Creation of Chinese Trade Linkages

A new NBER research paper hits the streets by Deborah Swenson of UCD.


"Multinationals and the Creation of Chinese Trade Linkages"
NBER Working Paper No. W13271

University of California, Davis - Department of
Economics, National Bureau of Economic Research

Full Text:

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.


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