This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Are Financial Sector Policies Effective In Deepening The Malaysian Financial System?

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
George Shih-Ku Chen
Abstract

We investigate the effect of agglomeration economies on Taiwanese Greenfield investors' location choice in China from 1996 to 2005. Using a nested logit model, we find that Taiwanese investors first select a region in China where he or she wants to invest, before selecting the best province within that region. Furthermore, we find evidence that, since 2000, market access, industrial linkages and monitoring costs have become important agglomeration forces driving Taiwanese investors' location choice in China. Finally, we discover that the nature of agglomeration economies varies extensively for Taiwanese investors across different industries. Taken together, these findings suggest that the Chinese government must formulate region-wide development strategies and industry-specific policies if it wants to attract more Taiwanese investment in the near future.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.buseco.monash.edu.au/eco/research/papers/2009/0209agglomerationchen.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 02/09.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 39 pages
Date of creation: 02 Feb 2009
Date of revision:
Handle: RePEc:mos:moswps:2009-02

Contact details of provider:
Postal: Department of Economics, Monash University, Victoria 3800, Australia
Phone: +61-3-9905-2493
Fax: +61-3-9905-5476
Email:
Web page: http://www.buseco.monash.edu.au/eco/
More information through EDIRC

Order Information:
Email:
Web: http://www.buseco.monash.edu.au/eco/research/papers/

For technical questions regarding this item, or to correct its listing, contact: (Simon Angus).

Related research
Keywords: Agglomeration economies; China; Nested logit model; Taiwanese investment;

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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.:
  1. Guimaraes, Paulo & Figueiredo, Octavio & Woodward, Douglas, 2000. "Agglomeration and the Location of Foreign Direct Investment in Portugal," Journal of Urban Economics, Elsevier, vol. 47(1), pages 115-135, January. [Downloadable!] (restricted)
  2. Canfei He, 2003. "Location of foreign manufacturers in China: Agglomeration economies and country of origin effects," Economics of Governance, Springer, vol. 82(3), pages 351-372, September. [Downloadable!] (restricted)
  3. Raffaello Bronzini, 2004. "Foreign Direct Investment and Agglomeration: Evidence from Italy," ERSA conference papers ersa04p321, European Regional Science Association. [Downloadable!]
    Other versions:
  4. Canfei He, 2003. "Location of foreign manufacturers in China: Agglomeration economies and country of origin effects," Papers in Regional Science, Springer, vol. 82(3), pages 351-372, September. [Downloadable!] (restricted)
  5. Yingqi Wei, Xiaming Liu, David Parker, Kirit Vaidya, 1999. "The Regional Distribution of Foreign Direct Investment in China," Regional Studies, Taylor and Francis Journals, vol. 33(9), pages 857-867, December. [Downloadable!] (restricted)
  6. Braunerhjelm, Pontus & Svensson, Roger, 1996. "Host Country Characteristics and Agglomeration in Foreign Direct Investment," Applied Economics, Taylor and Francis Journals, vol. 28(7), pages 833-40, July. [Downloadable!] (restricted)
  7. Head, C. Keith & Ries, John C. & Swenson, Deborah L., 1999. "Attracting foreign manufacturing: Investment promotion and agglomeration," Regional Science and Urban Economics, Elsevier, vol. 29(2), pages 197-218, March. [Downloadable!] (restricted)
  8. Smith Jr. , Donald F. & Florida Richard, 1994. "Agglomeration and Industrial Location: An Econometric Analysis of Japanese-Affiliated Manufacturing Establishments in Automotive-Related Industries," Journal of Urban Economics, Elsevier, vol. 36(1), pages 23-41, July. [Downloadable!] (restricted)
  9. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June. [Downloadable!] (restricted)
    Other versions:
  10. Laura Resmini, 2000. "The Determinants of Foreign Direct Investment in the CEECs: New evidence from sectoral patterns," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(3), pages 665-689, November. [Downloadable!] (restricted)
    Other versions:
  11. 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," Working Papers 2003-13, CEPII research center. [Downloadable!]
    Other versions:
  12. Wheeler, David & Mody, Ashoka, 1992. "International investment location decisions : The case of U.S. firms," Journal of International Economics, Elsevier, vol. 33(1-2), pages 57-76, August. [Downloadable!] (restricted)
  13. Chen Chunlai, . "Provincial Characteristics And Foreign Direct Investment Location Decision Within China," Working Papers 97_16, Chinese Economies Research Centre.
  14. Head, Keith & Ries, John & Swenson, Deborah, 1995. "Agglomeration benefits and location choice: Evidence from Japanese manufacturing investments in the United States," Journal of International Economics, Elsevier, vol. 38(3-4), pages 223-247, May. [Downloadable!] (restricted)
    Other versions:
  15. Cletus C. Coughlin & Eran Segev, 2000. "Location Determinants of New Foreign-Owned Manufacturing Plants," Journal of Regional Science, Blackwell Publishing, vol. 40(2), pages 323-351. [Downloadable!] (restricted)
    Other versions:
  16. BARRIOS, Salvador & GORG, Holger & STROBL, Eric, 2003. "Multinationals' location choice, agglomeration economies and public incentives," CORE Discussion Papers 2003017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
  17. Joel Deichmann & Socrates Karidis & Selin Sayek, 2003. "Foreign direct investment in Turkey: regional determinants," Applied Economics, Taylor and Francis Journals, vol. 35(16), pages 1767-1778, November. [Downloadable!] (restricted)
  18. Nigel Driffield, Max Munday, 2001. "Foreign Manufacturing, Regional Agglomeration and Technical Efficiency in UK Industries: A Stochastic Production Frontier Approach," Regional Studies, Taylor and Francis Journals, vol. 35(5), pages 391-399, July. [Downloadable!] (restricted)
  19. Chu-Chia S. Lin & Ivan Png, 2003. "Monitoring costs and the mode of international investment," Journal of Economic Geography, Oxford University Press, vol. 3(3), pages 261-274, July.
    Other versions:
Full references

Statistics
Access and download statistics

Did you know? You too can volunteer for RePEc, for example by encouraging others to use our services.

This page was last updated on 2009-11-25.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.