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Multinationals and the creation of Chinese trade linkages

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  • 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. Ce mémoire étudie la relation entre la proximité d'une firme plurinationale et la formation de nouveaux liens à l'exportation par des exportateurs chinois entre 1997 et 2003. Les résultats montrent que la croissance de la présence de firmes plurinationales est reliée de façon positive avec la formation de nouveaux liens commerciaux avec les firmes chinoises locales. Ces travaux suggèrent que les débordements d'information peuvent être à la source de ces résultats, car la relation positive attribuable à la présence de plurinationales dans la même industrie s'avère particulièrement forte dans des contextes où l'amélioration de l'information peut être la plus utile. Ainsi, il semble qu'une présence accrue de firmes plurinationales peut accroître les capacités d'exportation des firmes locales.

Suggested Citation

  • Deborah L. Swenson, 2008. "Multinationals and the creation of Chinese trade linkages," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(2), pages 596-618, May.
  • Handle: RePEc:wly:canjec:v:41:y:2008:i:2:p:596-618
    DOI: 10.1111/j.1540-5982.2008.00478.x
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    JEL classification:

    • F1 - International Economics - - Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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