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Foreign Direct Investment of Japanese Firms: An Empirical Analysis of Market and Firm Specific Factors
- Publisher
- Springer Journals
- Copyright
- 2005 Japanese Economic Association
- ISSN
- 1352-4739
- eISSN
- 1468-5876
- DOI
- 10.1111/j.1468-5876.2005.00337.x
- Publisher site
- See Article on Publisher Site
Abstract
Abstract In the 1990s, Japanese firms rapidly increased the number of locations of their affiliates in China, displaying considerable regional heterogeneity in the abundance of better educated human resources, wage costs, increasing numbers of special economic zones, industrial agglomeration and the enrichment of social infrastructure. This paper employs conditional logit estimations to examine how these heterogeneous factors affect the location choice of Japanese affiliates by correlating Japanese data to data from Chinese provinces and Special Cities. The results reveal that factors related to human resources are more important than the ’hard’ factors in attracting foreign firms to invest China.
Journal
The Japanese Economic Review – Springer Journals
Published: Dec 1, 2005
Keywords: economics, general; microeconomics; macroeconomics/monetary economics//financial economics; econometrics; development economics; economic history