Location Choice of Multinational Enterprises in China: Comparison between Japan and Taiwan
AbstractThis paper explores the location choice of MNEs in China, shedding special light on the role of agglomeration of same-nationality firms. In particular, we examine how its role differs according to investors’ productivity. Furthermore, we compare the location choice of Japanese and Taiwanese MNEs in China, because Taiwanese MNEs are expected to experience less uncertainty in investing in China than Japanese MNEs, due to Taiwan’s linguistic and cultural advantages in China. We find that, less productive Japanese firms prefer to locate close to larger same-nationality agglomerations, there are no differences in location according to firms’ productivity in the case of Taiwanese firms.
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Bibliographic InfoPaper provided by Economic Research Institute for ASEAN and East Asia (ERIA) in its series Working Papers with number DP-2011-01.
Length: 35 pages.
Date of creation: 01 Feb 2011
Date of revision:
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Other versions of this item:
- Chang, Kuo-I & Hayakawa, Kazunobu & Matsuura, Toshiyuki, 2010. "Location choice of multinational enterprises in China : comparison between Japan and Taiwan," IDE Discussion Papers 251, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- M10 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-05 (All new papers)
- NEP-CSE-2011-03-05 (Economics of Strategic Management)
- NEP-INT-2011-03-05 (International Trade)
- NEP-TRA-2011-03-05 (Transition Economics)
- NEP-URE-2011-03-05 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anne-Celia Disdier & Thierry Mayer, 2003.
"How Different is Eastern Europe? Structure and Determinants of Location Choices by French Firms in Eastern and Western Europe,"
2003-13, CEPII research center.
- Disdier, Anne-Celia & Mayer, Thierry, 2004. "How different is Eastern Europe? Structure and determinants of location choices by French firms in Eastern and Western Europe," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 280-296, June.
- Nobuaki Yamashita & Toshiyuki Matsuura & Kentaro Nakajima, 2013. "Agglomeration effects of inter-firm backward and forward linkages: evidence from Japanese manufacturing investment in China," Keio/Kyoto Joint Global COE Discussion Paper Series 2012-042, Keio/Kyoto Joint Global COE Program.
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