Carlsson, Johan (Stockholm School of Economics) Nordegren, Axel (Stockholm School of Economics) Sjöholm, Fredrik (European Institute of Japanese Studies)
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Western firms locating in China face a business environment that differs from their home country environment. The differences increase uncertainties and are negative for economic performance. However, firms may differ in their ability to overcome the difficulties, depending on their previous experience. In particular, firms with experience from regions similar to China might do comparably well. We conduct a survey of Scandinavian firms with subsidiaries in China to examine their economic performance. Our results show that subsidiaries in China perform better if the firms have subsidiaries in Hong Kong, Taiwan, or Singapore. In addition, the length of subsidiaries’ operation in China, and the experience from foreign countries outside of Greater China, are also positively affecting the subsidiaries’ economic performance.
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Paper provided by The European Institute of Japanese Studies in its series EIJS Working Paper Series with number
188.
Length: 35 pages Date of creation: 01 Feb 2004 Date of revision: Handle: RePEc:hhs:eijswp:0188
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Find related papers by JEL classification: F20 - International Economics - - International Factor Movements and International Business - - - General F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business M20 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - General
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