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The Global Agglomeration of Multinational Firms / Laura Alfaro, Maggie Chen.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Alfaro, Laura.
Contributor:
National Bureau of Economic Research.
Chen, Maggie.
Series:
Working Paper Series (National Bureau of Economic Research) no. w15576.
NBER working paper series no. w15576
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2009.
Summary:
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 offshore agglomeration of multinational firms in comparison to the agglomeration of domestic 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 analyze the different patterns underlying the global economic geography of multinational and non-multinational firms. We present new stylized facts that suggest the offshore clusters of multinationals are not a simple reflection of domestic industrial clusters. Agglomeration economies including technology diffusion and capital-good market externality play a more important role in the offshore agglomeration of multinationals than the agglomeration of domestic firms. These findings remain robust when we explore the process of agglomeration.
Notes:
Print version record
December 2009.

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