Location of foreign manufacturers in China: Agglomeration economies and country of origin effects

Canfei He ()

Economics of Governance, 2003, vol. 82, issue 3, 372 pages

Abstract: Using data from China, this article finds that agglomeration economies derived from the clustering of manufacturing and foreign investment activities, combined with better access to markets, influence the location of foreign manufacturers. Foreign enterprises are attracted to cities with investment incentives, but they avoid high labour cost locations. The locational patterns also suggest country of origin effects. American, Hong Kong and Taiwanese manufacturers tend to value access to domestic markets, while Japanese investors favour port cities. Further analysis indicates the presence of origin of country effects at the sectoral level. Copyright Springer-Verlag Berlin/Heidelberg 2003

Keywords: Agglomeration economies; country of origin effects; China (search for similar items in EconPapers)
Date: 2003
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DOI: 10.1007/s10110-003-0168-9

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