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

Jean-Louis Mucchielli and Pei Yu
Additional contact information
Pei Yu: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

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.

Keywords: agglomeration; China; conditional logit model; foreign direct investment; location choices; US and European multinational corporations (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Published in Asia Pacific Business Review, 2011, 4 (17), pp.431-453. ⟨10.1080/13602381.2011.546627⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:hal:journl:hal-00648210

DOI: 10.1080/13602381.2011.546627

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().