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

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  • Canfei He

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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

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Bibliographic Info

Article provided by Springer in its journal Papers in Regional Science.

Volume (Year): 82 (2003)
Issue (Month): 3 (September)
Pages: 351-372

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Handle: RePEc:spr:presci:v:82:y:2003:i:3:p:351-372

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Related research

Keywords: Agglomeration economies; country of origin effects; China;

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Cited by:
  1. Maurice Catin & Christophe Van huffel, 2004. "Ouverture économique et inégalités régionales de développement en Chine : le rôle des institutions," Mondes en développement, De Boeck Université, vol. 128(4), pages 7-23.
  2. Veale, Roberta & Quester, Pascale, 2009. "Do consumer expectations match experience? Predicting the influence of price and country of origin on perceptions of product quality," International Business Review, Elsevier, vol. 18(2), pages 134-144, April.
  3. Anthony Chin & Hong Junjie, 2005. "The Location Decisions of Foreign Logistics Firms in China : Does Transport Network Capacity Matter?," Trade Working Papers 22568, East Asian Bureau of Economic Research.
  4. Chen, George Shih-Ku, 2009. "Determinants of Taiwanese investment in China: An agglomeration economies-based perspective," MPRA Paper 13894, University Library of Munich, Germany.
  5. Alexandra SCHAFFAR, 2008. "Regional Income Inequality And Urbanisation Trends In China: 1978-2005," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 87-110.
  6. Chun Yang & Haifeng Liao, 2010. "Industrial agglomeration of Hong Kong and Taiwanese manufacturing investment in China: a town-level analysis in Dongguan," The Annals of Regional Science, Springer, vol. 45(3), pages 487-517, December.
  7. Catin, Maurice & Luo, Xubei & Van Huffel, Christophe, 2005. "Openness, industrialization, and geographic concentration of activities in China," Policy Research Working Paper Series 3706, The World Bank.
  8. Chen, George Shih-Ku, 2009. "Agglomeration economies and the location of Taiwanese investment in China," MPRA Paper 13896, University Library of Munich, Germany.
  9. Hong, Junjie, 2007. "Transport and the location of foreign logistics firms: The Chinese experience," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(6), pages 597-609, July.
  10. Hong, Junjie & CHIN, Anthony T.H., 2007. "Modeling the location choices of foreign investments in Chinese logistics industry," China Economic Review, Elsevier, vol. 18(4), pages 425-437.
  11. Suminori Tokunaga & Shaosheng Jin, 2011. "Market potential, agglomeration and location of Japanese manufacturers in China," Letters in Spatial and Resource Sciences, Springer, vol. 4(1), pages 9-19, March.

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