Cultural Proximity and Local Firms’ catch up with Multinational Enterprises

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2014-08Rights
© 2014 Elsevier. Reproduced in accordance with the publisher's self-archiving policy. This manuscript version is made available under the CC-BY-NC-ND 4.0 license (http://creativecommons.org/licenses/by-nc-nd/4.0/)Peer-Reviewed
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openAccessAccepted for publication
23/02/2014
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Show full item recordAbstract
Integrating and extending new growth theory and resource-based views, this paper provides a theoretical foundation for the catch-up hypothesis. It examines the role of technology gap, technological capability, and cultural proximity in local firms’ catch-up with MNEs. Hypotheses are developed and tested with a dynamic model on a large firm-level panel dataset from Chinese manufacturing. The results confirm that catch-up is positively related to technology gap and technological capability. Furthermore, in the presence of cultural proximity, the speed of local Chinese firms’ catch-up with MNEs from Hong Kong, Macau, and Taiwan is not significantly lower than that with other MNEs.Version
Accepted ManuscriptCitation
Wang J, Liu X, Wei Y and Wang C (2014) Cultural proximity and local firms’ catch up with multinational enterprises. World Development. 60: 1-13.Link to Version of Record
https://doi.org/10.1016/j.worlddev.2014.02.010Type
Articleae974a485f413a2113503eed53cd6c53
https://doi.org/10.1016/j.worlddev.2014.02.010