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

Yibo Qiao, Andrea Ascani and Andrea Morrison
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Yibo Qiao: School of Architecture and Urban Planning, Nanjing University, Nanjing, China

Environment and Planning A, 2024, vol. 56, issue 4, 1077-1101

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.

Keywords: Multinational enterprises; relatedness; complexity; regional diversification; China (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:56:y:2024:i:4:p:1077-1101

DOI: 10.1177/0308518X231223621

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