Agglomeration Effects and Japanese Food Industry Investment in China: Evidence from the Cities
Suminori Tokunaga (),
Yuko Akune and
No 25307, 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia from International Association of Agricultural Economists
This paper uses the data from Chugoku Shinshutsu Kigyou Ichiran 2003-2004 (A View of Japanese Enterprises Investments in China 2003-2004) to study 1ocation choice of Japanese food industry investment in 231 Chinese cities from 1992 to 2001, paying a particular attention to agglomeration effects. A negative binominal model indicates that labor cost (WAGE) is the most important factor that deters Japanese food industry investment. Market size (GDP), raw material (MATER), port (PORT) and policy incentives (POLICY), however, have positive effects in Japanese food industry investment location choice in China. As for the three-tier agglomeration effects' test, the agglomeration effects of Japanese manufactures agglomeration (AG2) and Japanese food manufactures agglomeration (AG3) are confirmed, but not for foreign investment agglomeration (AG1).
Keywords: Agribusiness; International Relations/Trade (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae06:25307
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