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The Location of Japanese Investments in China: Agglomeration Effects, Keiretsu, and Firm Heterogeneity

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Author Info

  • Belderbos,R.
  • Carree,M.

    (NIBOR)

Abstract

Conditional logit analysis of the locational choice by Japanese electronics firms in China''s regions and provinces during 1990-1995 confirms a major impact of general industry, Japanese, and keiretsu-specific agglomeration benefits. Further analysis reveals a substantial aggregation bias due to the presence of firm heterogeneities in terms of investor size and market orientation of manufacturing investments. Small and medium sized enterprises are more sensitive to distance from Japan and Japanese agglomeration, but less sensitive to the presence of incentive zones. Export oriented plants are more responsive than local market oriented plants to keiretsu agglomeration and seaports but less responsive to regional demand.

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Bibliographic Info

Paper provided by Maastricht University, Netherlands Institute of Business Organization and Strategy Research (NIBOR) in its series Research Memorandum with number 002.

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Date of creation: 2000
Date of revision:
Handle: RePEc:unm:umanib:2000002

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Postal: P.O. Box 616, 6200 MD Maastricht
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Keywords: business administration and economics ;

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  18. Leonard Cheng & Yum K. Kwan, 2000. "The Location of Foreign Direct Investment in Chinese Regions: Further Analysis of Labor Quality," NBER Chapters, in: The Role of Foreign Direct Investment in East Asian Economic Development, NBER-EASE Volume 9, pages 213-238 National Bureau of Economic Research, Inc.
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