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

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  • Yibo Qiao
  • Nicola Cortinovis
  • Andrea Morrison

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.

Suggested Citation

  • Yibo Qiao & Nicola Cortinovis & Andrea Morrison, 2024. "MNE Spillovers and Local Export Dynamics in China: The Role of Relatedness and Forward-Backward Linkages," Papers in Evolutionary Economic Geography (PEEG) 2415, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2024.
    • Handle: RePEc:egu:wpaper:2415
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    Keywords

    Relatedness; forward-backward linkages; multinational enterprises; export; innovation; China;
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