Multinationals and the Creation of Chinese Trade Linkages

36 Pages Posted: 23 Jul 2007 Last revised: 7 Oct 2022

See all articles by Deborah L. Swenson

Deborah L. Swenson

University of California, Davis - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: July 2007

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.

Suggested Citation

Swenson, Deborah L., Multinationals and the Creation of Chinese Trade Linkages (July 2007). NBER Working Paper No. w13271, Available at SSRN: https://ssrn.com/abstract=1002050

Deborah L. Swenson (Contact Author)

University of California, Davis - Department of Economics ( email )

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