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Location of foreign manufacturers in China: Agglomeration economies and country of origin effects

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  • Canfei He

Abstract

Using data from China, this article finds that agglomeration economies derived from the clustering of manufacturing and foreign investment activities, combined with better access to markets, influence the location of foreign manufacturers. Foreign enterprises are attracted to cities with investment incentives, but they avoid high labour cost locations. The locational patterns also suggest country of origin effects. American, Hong Kong and Taiwanese manufacturers tend to value access to domestic markets, while Japanese investors favour port cities. Further analysis indicates the presence of origin of country effects at the sectoral level. Copyright Springer-Verlag Berlin/Heidelberg 2003

Suggested Citation

  • Canfei He, 2003. "Location of foreign manufacturers in China: Agglomeration economies and country of origin effects," Papers in Regional Science, Springer;Regional Science Association International, vol. 82(3), pages 351-372, September.
    • Handle: RePEc:spr:presci:v:82:y:2003:i:3:p:351-372
    DOI: 10.1007/s10110-003-0168-9
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