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Location choice of multinational enterprises in China : comparison between Japan and Taiwan

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Author Info

  • Chang, Kuo-I
  • Hayakawa, Kazunobu
  • Matsuura, Toshiyuki

Abstract

This paper examines and compares the location choice of Japanese and Taiwanese MNEs in China. Furthermore, we investigate the relationship between location choice and firm characteristics, specifically firms' productivity. Due to Taiwan's linguistic and cultural advantages in China, it is expected that the location choice mechanics are different between Japanese and Taiwanese MNEs. As a result, our main findings are that, while the less productive Japanese firms prefer a location in an area with a larger agglomeration of Japanese affiliates or in an area closer to Japan, the more productive Taiwanese firms prefer a location in an area with a larger agglomeration of Taiwanese affiliates or in an area closer to Taiwan.

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File URL: http://ir.ide.go.jp/dspace/bitstream/2344/907/1/ARRIDE_Discussion_No.251_hayakawa.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 251.

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Date of creation: Aug 2010
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Publication status: Published in IDE Discussion Paper. No. 251. 2010.8
Handle: RePEc:jet:dpaper:dpaper251

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Related research

Keywords: Multinational enterprises; China; Productivity; Taiwan; Japan; International business enterprises; Industrial management;

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  1. 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.
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Cited by:
  1. 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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