MNC's location choice and agglomeration: a comparison between US and European affiliates in China

Jean-Louis Mucchielli and Pei Yu

Asia Pacific Business Review, 2011, vol. 17, issue 4, 431-453

Abstract: US and European multinational corporations encounter greater cultural barriers than Asian multinational corporations when investing in China, and the global economic recession further raises their location risks. Using data from the ‘2007 Fortune 500’ list, we conduct conditional logit estimations to test the main determinants of the choices made by 457 US and 537 European manufacturing affiliates located in China during the period 1995--2007, just prior to the economic crisis. Our main finding is that market size, production costs, agglomeration effects and geographical location impact significantly on both US and European firms' choices. Agglomeration is the preferred strategy of the sample firms. We also show that the host sector's technological intensity has a greater impact on US firms than on European ones.

Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://hdl.handle.net/10.1080/13602381.2011.546627 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: MNC's location choice and agglomeration: a comparison between US and European affiliates in China (2011)
Working Paper: MNC's location choice and agglomeration: a comparison between US and European affiliates in China (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apbizr:v:17:y:2011:i:4:p:431-453

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/FAPB20

DOI: 10.1080/13602381.2011.546627

Access Statistics for this article

Asia Pacific Business Review is currently edited by Professor Chris Rowley and Malcolm Warner

More articles in Asia Pacific Business Review from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().