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Location of foreign manufacturers in China: Agglomeration economies and country of origin effects *
Author(s) -
He Canfei
Publication year - 2003
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1007/s10110-003-0168-9
Subject(s) - economies of agglomeration , china , incentive , foreign direct investment , business , investment (military) , value (mathematics) , port (circuit theory) , economic geography , international economics , economics , international trade , market economy , economic growth , geography , archaeology , politics , political science , law , macroeconomics , electrical engineering , engineering , machine learning , computer science
. Using data from China, this article finds that agglomeration economies derived from the clustering of manufacturing and foreign investment activities, combined with better access to markets, influence the location of foreign manufacturers. Foreign enterprises are attracted to cities with investment incentives, but they avoid high labour cost locations. The locational patterns also suggest country of origin effects. American, Hong Kong and Taiwanese manufacturers tend to value access to domestic markets, while Japanese investors favour port cities. Further analysis indicates the presence of origin of country effects at the sectoral level.