Papers in Evolutionary Economic Geography

May 21, 2024

# 24.15 MNE Spillovers and Local Export Dynamics in China: The Role of Relatedness and Forward-Backward Linkages

Filed under: 2024 — Tags: , , , , , — sgpetraliauunl @ 11:52 am

Yibo Qiao, Nicola Cortinovis & Andrea Morrison 

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Abstract:

This article investigates how MNEs influence the export behavior of domestic firms in the context of China. We conceptually disentangle different MNE spillovers related to local export dynamics, linking in a unique framework specific spillover mechanisms, channels, activation conditions and type of knowledge conveyed. Empirically, our analysis relies on a panel dataset containing all Chinese manufacturing firms in the period 2000-2007. The results show that relatedness linkages matter in the context of export quantity, while forward-backward linkages matter for the sophistication of export. These findings suggest that relatedness linkages convey mainly marketing-related knowledge spillovers, while forward-backward linkages are diffusing mainly product-related knowledge spillovers.

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