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Impact Studies of Foreign Enterprises in China (I)


  • Houkai Wei

    () (Institute of Industrial Economics, Chinese Academy of Social Sciences, Beijing, 100836, P. R. China)


Based on the survey responses of 112 operating foreign enterprises in the city of Qinghuandao, this study finds that the highest ranked motives for foreign investments in China are principally concerned with cheap labor and resources and the vast market. The primary factors determining them to locate in the city include the access to transportation facilities, physical input costs, investment incentives, proximity to the Beijing and Tianjin market, and environmental consideration. Nonparametric tests reveal that the relative importance of motives for foreign investments in China vary most with their starting time and exporting status, to a moderate extent with sector of investment, country of origins and entry mode. Only weak support for the hypothesis that locational factors in Qinghuandao vary by characteristics of foreign enterprises is found. This indicates that foreign investors select the city to exploit the similar locational advantages. The survey responses compare fairly consistent with results derived from many econometric models.

Suggested Citation

  • Houkai Wei, 2008. "Impact Studies of Foreign Enterprises in China (I)," Revista de Economie Industriala (Journal of Industrial Eonomics), Centre for Industrial Economics and Services, vol. 6(2), pages 5-30, June.
  • Handle: RePEc:cei:recind:v:6:y:2008:i:2:p:5-30

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    More about this item


    Motives; FDI; survey; locational factors; China;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns


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