Foreign workers and international partners as channels to international markets

What is it about?

Past contributions stress that international ties in the form of foreign workers and international collaboration enable firms to be present in international markets by providing access to diverse knowledge, and professional and social networks. These mechanisms have, however, not undergone the same empirical scrutiny for firms in intermediate and peripheral regions. If firms in more peripheral regions are able to tap into the global economy using international channels, this has important implications, for example, for the localization decision of firms. The empirical analysis builds on linked employer–employee data (LEED) merged with community innovation survey (CIS) data. The results demonstrate that there is a positive association between international ties and international market presence for firms in core, intermediate and peripheral regions, demonstrating that peripheral regions are not detached from global processes. There are, however, slight different patterns observed, for example, indicating that different collaboration partners are used in order to reach international markets for firms in core, intermediate and peripheral regions.

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