potentially problematic, as they depend on a number of restrictive assumptions, namely that (i) multinationals use domestically … produced inputs in the same proportion as imported inputs, (ii) multinationals have the same input sourcing behaviour as … domestic firms, irrespective of their country of origin, and (iii) the demand for locally produced inputs by multinationals is …

With a firm-level dataset, we study the location decision of all South Korean multinationals across China's regions … affiliates from South Korean multinationals. More importantly, we decompose these agglomeration effects into a pure agglomeration …