This study provides a longitudinal survival assessment of Indian subsidiaries in Chinese provinces. We construct a panel dataset of Indian subsidiaries operating in Chinese provinces during 2004–2017 and examine survival using a panel probit model and Cox regression. The results support the real options perspective, the economic geography approach and the institution-based view. Subsidiary exits were associated with smaller size, albeit higher in the manufacturing sector. There is a positive impact of sub-national economic geography factors on subsidiary survival. The finding contributes to the South–South investment literature as it highlights the role of sub-national factors in shaping subsidiary survival.
Published in: The Australian Economic Review
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