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Location Choice of Multinational Enterprises in China: Comparison between Japan and Taiwan

Kuo-I Chang, Kazunobu Hayakawa () and Toshiyuki Matsuura ()
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Kuo-I Chang: Department of Applied Economics, National Chung Hsing University, Taiwan

No DP-2011-01, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This paper explores the location choice of MNEs in China, shedding special light on the role of agglomeration of same-nationality firms. In particular, we examine how its role differs according to investors’ productivity. Furthermore, we compare the location choice of Japanese and Taiwanese MNEs in China, because Taiwanese MNEs are expected to experience less uncertainty in investing in China than Japanese MNEs, due to Taiwan’s linguistic and cultural advantages in China. We find that, less productive Japanese firms prefer to locate close to larger same-nationality agglomerations, there are no differences in location according to firms’ productivity in the case of Taiwanese firms.

Pages: 35 pages.
Date: 2011-02-01
New Economics Papers: this item is included in nep-cse, nep-int, nep-tra and nep-ure
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Related works:
Journal Article: Location choice of multinational enterprises in China: Comparison between Japan and Taiwan (2014) Downloads
Working Paper: Location choice of multinational enterprises in China: comparison between Japan and Taiwan (2010) Downloads
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