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Location choice of multinational enterprises in C hina: Comparison between J apan and T aiwan
Author(s) -
Chang KuoI,
Hayakawa Kazunobu,
Matsuura Toshiyuki
Publication year - 2014
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 - 10.1111/pirs.12001
Subject(s) - multinational corporation , nationality , urban agglomeration , business , productivity , advertising , labour economics , economics , economic geography , immigration , economic growth , geography , finance , archaeology
This paper explores the location choice of multinational enterprises ( MNEs ) in C hina, shedding special light on the role of agglomeration of same‐nationality firms. We examine how this role differs according to firms' productivity. Furthermore, we compare the location choice of J apanese and T aiwanese MNEs in C hina, taking into consideration that T aiwanese MNEs experience less uncertainty in investing in C hina due to T aiwan's linguistic and cultural advantages. When considering firms' productivity, we find that less productive J apanese firms prefer to locate close to larger same‐nationality agglomerations while there are no differences in location choices in the case of T aiwanese firms.