Di Ubaldo, Mattia and Siedschlag, Iulia (2022) Could spillovers from multinationals affect the trade activities of local firms? Economics Letters, 221. pp. 1-5. ISSN 0165-1765

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Abstract

This paper examines spillovers from foreign affiliates of multinationals on various margins of trade of local firms. We find that a larger foreign presence in the same region crowds out the trade activity of local firms, resulting in a reduction of the number of products imported and exported, as well as of the number of origins where imports are sourced from. Supply chain linkages with foreign affiliates are instead found to help local firms to diversify their exports and imports. Engagement in R&D activity allows local firms to mitigate some of the negative effects of the presence of foreign-owned firms in the same region, and enhances the local firms’ gains arising through forward linkages.

Item Type:	Article
Schools and Departments:	University of Sussex Business School > Economics
SWORD Depositor:	Mx Elements Account
Depositing User:	Mx Elements Account
Date Deposited:	25 Oct 2022 14:13
Last Modified:	27 Apr 2023 11:02
URI:	http://sro.sussex.ac.uk/id/eprint/108674

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