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on International Activities of Firms |
| By: | Elvis Korku Avenyo (South African Research Chair in Industrial Development, University of Johannesburg); Danilo Spinola (College of Accounting, Finance and Economics, Researcher at UNU-Merit.); Fiona Tregenna (South African Research Chair in Industrial Development, University of Johannesburg) |
| Abstract: | This paper examines the firm-level effects of Chinese manufacturing import penetration on the performance of manufacturing firms in Belt and Road Initiative (BRI) countries. We construct a dataset of 59 BRI member countries by combining firm-level data from the World Bank's Enterprise Survey with industry-level data from the United Nations Commodity Trade (Comtrade) database from 2011 to 2020. Employing a multi-level modelling approach, our findings reveal that Chinese manufacturing imports exert a considerable adverse effect on productivity growth and employment, and a robust and significant positive effect on the export capabilities of manufacturing firms. The adverse effects on performance are significantly moderated by firms that pursue innovation and engage in foreign licensing. These findings are significant in middle-income countries and small and medium-sized enterprises (SMEs) within BRI countries. Based on these findings, we argue that the importation of manufactured goods from China results in a crowding-out effect on the productive capacities of firms within the Belt and Road Initiative (BRI) countries on the one hand and a catalytic effect on the internationalisation of firms on the other hand. These dual outcomes may underscore China's global value chains (GVCs) position-seeking strategy. |
| Keywords: | Chinese manufacturing import penetration; Multi-level modelling; Firm-level effects; Belt and Road Initiative. |
| JEL: | F14 F15 F61 O14 P33 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:adz:wpaper:2024-06 |
| By: | Gaul, Johannes; Schulz, Inga |
| Abstract: | This paper examines whether multinational enterprises (MNEs) adapt to international anti-tax avoidance regulation by intensifying domestic profit shifting activities. We compile a novel dataset by mapping MNE ownership network structures that link international to sub-national tax haven subsidiaries over time. Our analyses show that tighter international rules lead more strongly affected firms to intensify their presence in sub-national tax havens, consistent with strong increases in profit tax revenues at these locations. This shift indicates that international tax policies have had bite in constraining cross-border tax avoidance. At the same time, our findings reveal MNEs' strategic flexibility and highlight domestic spillovers and local consequences of global tax reforms. |
| Keywords: | Corporate Networks, Geospatial Data, ATAD, CbCR |
| JEL: | H26 H71 K10 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:340013 |
| By: | Bryan Hardy; Felipe Saffie; Ina Simonovska |
| Abstract: | We study how U.S. dollar fluctuations transmit through domestic supply chains in emerging markets. Large firms borrow in foreign currency and extend trade credit to domestic partners, exposing the supply chain to exchange rate risk. We develop a model where financially constrained suppliers pass through shocks to buyers, while unconstrained firms absorb them. Using quarterly firm-level data from 19 emerging markets, we provide empirical evidence consistent with the model's predictions. We find that even highly exposed firms reduce trade credit only modestly following a depreciation, while accepting large profit losses, suggesting that firm-to-firm credit relationships partially shield downstream firms from financial shocks. |
| Keywords: | trade credit, financial constraints, supply chains, financial linkages, dollar |
| JEL: | F31 F34 G21 G32 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12598 |
| By: | Crowley, M. A.; Palacios, M. D.; Faraglia, E.; Giannitsarou, C.; Havemeister, L. |
| Abstract: | Geopolitical uncertainty alters the incentives of firms to organise their corporate structure across borders, creating a distinct margin of adjustment in response to policy risk. We study this margin using the Brexit referendum as a quasi-natural experiment. We combine firm level data on parent-subsidiary links for UK and EU firms between 2011 and 2021 with measures of Brexit-related uncertainty and study changes in foreign subsidiary formation at the extensive margin. Following the referendum, there was an increase in the number of subsidiary formation from the UK into the EU, while the number of EU firms that expanded with subsidiaries into the UK dropped. UK firms establishing their first EU subsidiary after the referendum were systematically weaker ex ante than comparable firms that did so before the referendum. Increased Brexit-related uncertainty is associated with increased foreign subsidiary formation from the UK into the EU, driven primarily by small firms, alongside suggestive evidence of decreased domestic subsidiary incorporation by UK firms. We interpret these findings as evidence of a 'precautionary' foreign direct investment channel, operating through changes in the corporate structures of firms in response to geopolitical uncertainty. |
| Keywords: | Brexit, Foreign Subsidiary, Geopolitical Uncertainty, Parent Firm |
| JEL: | F21 F23 G32 F15 D22 |
| Date: | 2026–03–06 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2619 |
| By: | Hiroshi IYETOMI; Yuta ARAI; Yuichi IKEDA |
| Abstract: | The ongoing geopolitical tensions between the United States and China are reshaping global production networks, particularly in the electronics industry, where East Asia serves as a central manufacturing hub. This study empirically examines Japan's position within the evolving East Asian electronics value chain using firm-level supply chain data. We construct a global supply chain network consisting of 15, 292 nodes (firms) and 27, 751 links (transactional relationships), centered on the electronics industry along with its two closely related sectors: the automotive and aerospace-defense industries. Our findings indicate that Japan continues to occupy an important upstream position, particularly in electronic components, manufacturing equipment, and precision instruments. However, a decline in the relative market share and network centrality of Japanese firms in the mainstream semiconductor industry suggests a departure from Japan's former dominance. In contrast, we identify a distinct automotive cluster in which Japanese firms remain highly competitive. The analysis also reveals an aerospace and defense community dominated by U.S. and European firms, characterized by limited participation from Japanese firms and the potential strategic exclusion of China. Furthermore, we uncover a separate cluster linking electronics, automation, and utilities, where Japanese firms play a prominent role with a 58% share. This cluster highlights a unique structural feature of industrial organization in Japan. |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:26025 |
| By: | BELDERBOS, René; SUZUKI, Shinya; OKAMURO, Hiroyuki; ASAKAWA, Kazuhiro |
| Abstract: | Multinational enterprises (MNEs) find it challenging to transfer technological knowledge to their overseas affiliates, as this transfer requires the exchange of tacit knowledge and because technological knowledge may spill over to local rivals. The use of expatriate employees may help MNEs to address these challenges, aiding in the transfer process and ensuring tighter control of this transfer. In this paper we examine under which conditions the assignment of expatriates to foreign affiliates is associated with higher levels of technology transfer by the MNE to those affiliates. Drawing on rich micro data on Japanese MNEs and their foreign affiliates, 2013-2022, affiliate fixed effect analysis confirms that expatriates facilitate knowledge transfer to foreign affiliates in particular for small and medium sized MNEs, MNEs that are technology leaders, and when an affiliate is minority-owned by the MNE or is facing rising geopolitical risks in the host country. |
| Keywords: | Multinational Enterprise (MNE), Small and Medium sized Enterprise (SME), expatriates, foreign affiliates, technology transfer |
| Date: | 2026–03–24 |
| URL: | https://d.repec.org/n?u=RePEc:hit:hiasdp:hias-e-160 |