Industry Agglomeration, Sub-National Institutions and the Profitability of Foreign Subsidiaries
Abstract
This study investigates the impact of industry agglomeration and its interaction with sub-national institutions on the profitability of multinational enterprises (MNEs) subsidiaries operating in an emerging economy. We argue that in an emerging economy like China, competition in product and factor markets is more intense between foreign firms than between foreign and domestic firms owning to market segmentation. Consequently, industry...
Paper Details
Title
Industry Agglomeration, Sub-National Institutions and the Profitability of Foreign Subsidiaries
Published Date
Aug 17, 2018
Volume
58
Issue
6
Pages
969 - 993
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