Work

External linkages and regional diversification in China: The role of foreign multinational enterprises

Year: 2024

Type: article

Abstract: This article investigates the role of local external linkages in supporting regional industry entry in new activities, by specifically considering the role of foreign multinational enterprises (MNEs). Theoretically, we construct an original conceptual framework encompassing different potential trajectories of regional diversification based on the presence of MNEs. Empirically, we focus on the case of 279 Chinese prefectures over 1998–2007 and our results suggest that the presence of MNEs is associated with industry entry in unrelated and complex industries, supporting the idea that regional external linkages can activate processes of diversification that modify the technological and industrial portfolio of local economies.

Source: Environment and Planning A Economy and Space

DOI: 10.1177/0308518x231223621

Authors: Yibo Qiao, Andrea Ascani, Andrea Morrison

Institutions: Nanjing University, Gran Sasso Science Institute, Utrecht University, University of Pavia, Bocconi University

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: green

Funder: Nederlandse Organisatie voor Wetenschappelijk Onderzoek