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Location choice of multinational enterprises in China: comparison between Japan and Taiwan

Chang Kuo-I, Kazunobu Hayakawa () and Toshiyuki Matsuura ()

No 251, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper examines and compares the location choice of Japanese and Taiwanese MNEs in China. Furthermore, we investigate the relationship between location choice and firm characteristics, specifically firms' productivity. Due to Taiwan's linguistic and cultural advantages in China, it is expected that the location choice mechanics are different between Japanese and Taiwanese MNEs. As a result, our main findings are that, while the less productive Japanese firms prefer a location in an area with a larger agglomeration of Japanese affiliates or in an area closer to Japan, the more productive Taiwanese firms prefer a location in an area with a larger agglomeration of Taiwanese affiliates or in an area closer to Taiwan.

Keywords: Multinational enterprises; China; Productivity; Taiwan; Japan; International business enterprises; Industrial management (search for similar items in EconPapers)
JEL-codes: D24 F23 M10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int, nep-tra and nep-ure
Date: 2010-08
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 251. 2010-08

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https://ir.ide.go.jp/?action=repository_action_com ... bute_id=22&file_no=1 First version, 2010 (application/pdf)

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 (2011) Downloads
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