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

Author

Listed:
  • Yibo Qiao

    (School of Architecture and Urban Planning, Nanjing University, Nanjing, China)

  • Andrea Ascani

    (Social Sciences Area, Gran Sasso Science Institute (GSSI), L’Aquila, Italy)

  • Andrea Morrison

    (Department of Political and Social Sciences, University of Pavia, Pavia, Italy
    ICRIOS – Department of Management and Technology, Bocconi University, Milan, Italy
    Department of Human Geography and Planning, Utrecht University, Utrecht, The Netherlands)

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.

Suggested Citation

  • Yibo Qiao & Andrea Ascani & Andrea Morrison, 2024. "External linkages and regional diversification in China: The role of foreign multinational enterprises," Environment and Planning A, , vol. 56(4), pages 1077-1101, June.
    • Handle: RePEc:sae:envira:v:56:y:2024:i:4:p:1077-1101
    DOI: 10.1177/0308518X231223621
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