DMCA
The Global Agglomeration of Multinational Firms (2012)
| Citations: | 3 - 1 self |
BibTeX
@MISC{Alfaro12theglobal,
author = {Laura Alfaro and Maggie Xiaoyang Chen},
title = {The Global Agglomeration of Multinational Firms},
year = {2012}
}
Share
 |
 |
 |
 |
||
OpenURL
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 o¤shore agglomeration of multinational 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 agglomeration and investigate the patterns and determinants underlying the global economic geography of multinational firms. Our analysis shows that the emerging o¤shore clusters of multinationals are not a simple reflection of domestic industrial clusters. Location fundamentals including market access and comparative advantage and under-emphasized agglomeration economies including capital-good market externality and technology diffusion play a particularly important role in multinationals’ offshore agglomeration.
Keyphrases
multinational firm global agglomeration important role operation information capital-good market externality multinational activity continuous index market access multinational production industrial production technology diffusion shore cluster under-emphasized agglomeration economy detailed location recent decade location fundamental comparative advantage global landscape simple reflection unique worldwide plant-level dataset global economic geography domestic industrial cluster shore agglomeration
