Location decisions of Japanese new manufacturing plants in China: a discrete-choice analysis

This paper adopts a conditional logit model to empirically examine the location choices of Japanese greenfield manufacturing foreign direct investment among Chinese provinces. It is hypothesized that its location decisions in China would be determined by the provinces' market sizes, infrastruct...

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Bibliographic Details
Published inThe Annals of regional science Vol. 40; no. 2; pp. 369 - 387
Main Authors Cheng, Shaoming, Stough, Roger R
Format Journal Article
LanguageEnglish
Published Heidelberg Springer Nature B.V 01.06.2006
Subjects
China
Cities
Costs
Decision making
Enterprises
Factories
Foreign direct investment
Foreign investment
Geographic location
Infrastructure
Japan
Labor costs
Labor force
Labor productivity
Labour force
Location analysis
Manufacturing
Manufacturing industry
Market
Market potential
Provinces
Public infrastructure
Public policy
Studies
Tax incentives
Wages & salaries
China
Japan
China, People's Rep
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Summary:This paper adopts a conditional logit model to empirically examine the location choices of Japanese greenfield manufacturing foreign direct investment among Chinese provinces. It is hypothesized that its location decisions in China would be determined by the provinces' market sizes, infrastructure capacities, labor, land, and energy costs, agglomeration effects, labor quality, and policy incentives. A Hausman-McFadden test is conducted to test whether the independence from irrelevant alternatives assumption of the conditional logit model is violated. [PUBLICATION ABSTRACT]
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0570-1864
1432-0592
DOI:10.1007/s00168-005-0052-4