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Location of Foreign Enterprises: Untangling the Influence of Ethnic Ties and Same-Country Agglomeration

Location of Foreign Enterprises: Untangling the Influence of Ethnic Ties and Same-Country Agglomeration

Gunessee, Saileshsingh, Sun, Yanxue and Liu, Chang (2016) Location of Foreign Enterprises: Untangling the Influence of Ethnic Ties and Same-Country Agglomeration. [Working Paper]

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Abstract

With an information costs and network approach, this paper studies the role of historical social ethnic ties in the location of foreign enterprises in the presence of same-country agglomeration. Using the natural setting of South Korean investment in China, historical ethnic ties are found to impinge on the link between samecountry agglomeration and foreign industrial location. The findings show a trade-off between these two factors where social ethnic ties matter more in the initial years and same-country agglomeration matters in later years. As such the first result is a cautionary note as to what same-country agglomeration is capturing, while the second finding tells of the time varying importance of ethnic ties.

Item Type: Working Paper
Uncontrolled Keywords: ethnic networks, agglomeration, foreign direct investment
Subjects: H Social Sciences > H Social Sciences (General)
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Department of Systems Management & Strategy
Last Modified: 24 Mar 2020 11:06
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None
URI: http://gala.gre.ac.uk/id/eprint/27300

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