Abstract

http://ssrn.com/abstract=1524857
 
 

References (47)



 
 

Citations (3)



 


 



The Global Agglomeration of Multinational Firms


Laura Alfaro


Harvard University - Business, Government and the International Economy Unit

Maggie Xiaoyang Chen


George Washington University

April 22, 2014

Harvard Business School BGIE Unit Working Paper No. 10-043

Abstract:     
The explosion of multinational activities in recent decades is rapidly transforming the global landscape of industrial production. But are the emerging clusters of multinational production the rule or the exception? What drives the offshore agglomeration of multinational firms in comparison to the agglomeration of domestic firms? Using a unique worldwide plant-level dataset that reports detailed location, ownership, and operation information for plants in over 100 countries, we construct a spatially continuous index of pairwise-industry agglomeration and investigate the patterns and determinants underlying the global economic geography of multinational firms. Our analysis presents new stylized facts that suggest the emerging offshore clusters of multinationals are not a simple reflection of domestic industrial clusters. Agglomeration economies including capital-good market externality and technology diffusion play a more important role in the offshore agglomeration of multinationals than the agglomeration of domestic firms. These findings remain robust when we address potential reverse causality by exploring the regional pattern and process of agglomeration.

Number of Pages in PDF File: 59

Keywords: multinational firm, agglomeration, location fundamentals, agglomeration economies

JEL Classification: F2, D2, R1

working papers series


Download This Paper

Date posted: December 18, 2009 ; Last revised: April 24, 2014

Suggested Citation

Alfaro, Laura and Chen, Maggie Xiaoyang, The Global Agglomeration of Multinational Firms (April 22, 2014). Harvard Business School BGIE Unit Working Paper No. 10-043. Available at SSRN: http://ssrn.com/abstract=1524857 or http://dx.doi.org/10.2139/ssrn.1524857

Contact Information

Laura Alfaro (Contact Author)
Harvard University - Business, Government and the International Economy Unit ( email )
Cambridge, MA 02138
United States
Maggie Xiaoyang Chen
George Washington University ( email )
710 21st Street NW
Washington, DC 20052
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,001
Downloads: 286
Download Rank: 54,897
References:  47
Citations:  3

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.313 seconds