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

Author

Listed:
  • 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.

Suggested Citation

  • 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).
  • Handle: RePEc:jet:dpaper:dpaper251
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    References listed on IDEAS

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    Cited by:

    1. Yoshifumi Fukunaga & Arata Kuno, 2012. "Toward a Consolidated Preferential Tariff Structure in East Asia: Going beyond ASEAN+1 FTAs," Working Papers PB-2012-03, Economic Research Institute for ASEAN and East Asia (ERIA).
    2. Kemboi Michael Kipkorir & Martine Oleche, 2020. "Short and Long-Run Impact of Trade Liberalization on Agricultural Growth in Kenya," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(3), pages 117-131.
    3. Yamashita, Nobuaki & Matsuura, Toshiyuki & Nakajima, Kentaro, 2014. "Agglomeration effects of inter-firm backward and forward linkages: Evidence from Japanese manufacturing investment in China," Journal of the Japanese and International Economies, Elsevier, vol. 34(C), pages 24-41.
    4. Francisco Puig & Borja Portero & Miguel González-Loureiro, 2017. "Clustering strategy and development of subsidiaries in China," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 44(2), pages 221-243, June.
    5. YAMASHITA Nobuaki & YAMAUCHI Isamu, 2019. "Effects of Offshore Production and R&D on Domestic Innovation Activities," Discussion papers 19068, Research Institute of Economy, Trade and Industry (RIETI).
    6. Yamashita, Nobuaki & Yamauchi, Isamu, 2019. "The effects of offshore production on onshore innovation: Evidence from Japanese multinationals," Research Policy, Elsevier, vol. 48(9), pages 1-1.

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    More about this item

    Keywords

    Multinational enterprises; China; Productivity; Taiwan; Japan; International business enterprises; Industrial management;
    All these keywords.

    JEL classification:

    • 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; Personnel Economics - - Business Administration - - - General

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