Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/19524
Title: Efficiency sorting among foreign affiliates : evidence from China
Authors: Chen, Y
Ge, Y
Lai, H 
Liu, Q
Issue Date: 2015
Publisher: Blackwell Publishing Ltd
Source: World economy, 2015, v. 38, no. 3, p. 568-581 How to cite?
Journal: World Economy 
Abstract: This paper uses a large micro-level data set to investigate the efficiency sorting pattern of foreign affiliates serving different markets. We find systematic differences among the attributes of foreign affiliates serving the local and overseas markets. Affiliates serving only the host country market are the most productive, the most capitalintensive and the most skill-intensive. Affiliates serving only the international market are the most unskilled and labour-intensive, the least efficient, pay the lowest wages and invest least in innovation and advertising. Affiliates serving both markets offer high wages and invest most in innovation and advertising. The results also suggest that the most productive affiliates choose to serve the host country market, whereas the least efficient affiliates target the international market.
URI: http://hdl.handle.net/10397/19524
ISSN: 0378-5920
DOI: 10.1111/twec.12210
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