Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

MULTINATIONAL CORPORATIONS' (MNCs) STRATEGIC LOCATION AND THE DEVELOPMENT OF FINANCIAL SERVICE HUBS IN CHINA

MULTINATIONAL CORPORATIONS' (MNCs) STRATEGIC LOCATION AND THE DEVELOPMENT OF FINANCIAL... Abstract This paper builds a theoretical link between agglomeration economies of Multinational Corporations (MNCs) headquarters and the development of financial service centres, with special account in the extant literature of financial geography. Specifically, four distinctive factors, namely path dependency, asymmetric information, institutional support and exogenous advantage are brought forward as the determinants of managerial considerations for MNCs strategic locations. Among them, the factor of asymmetric information is argued as the key factor to drive geographic agglomerations of financial activities in China. To examine the validity of the theory, China's Beijing-Shanghai city-pair is presented as a case. A binary logistic regression model-test is applied to compare the locational behavior of MNCs regional headquarter in the two cities. Finally, a financial centre index (Findex) analysis which quantifies the significance of financial sectors in the city-pair is conducted. The results reveal that contrary to the traditional point of view, Beijing has more advantages than Shanghai in developing to be a strong service and financial centre in China. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Asian Geographer Taylor & Francis

MULTINATIONAL CORPORATIONS' (MNCs) STRATEGIC LOCATION AND THE DEVELOPMENT OF FINANCIAL SERVICE HUBS IN CHINA

Asian Geographer , Volume 24 (1-2): 28 – Jan 1, 2005
28 pages

MULTINATIONAL CORPORATIONS' (MNCs) STRATEGIC LOCATION AND THE DEVELOPMENT OF FINANCIAL SERVICE HUBS IN CHINA

Abstract

Abstract This paper builds a theoretical link between agglomeration economies of Multinational Corporations (MNCs) headquarters and the development of financial service centres, with special account in the extant literature of financial geography. Specifically, four distinctive factors, namely path dependency, asymmetric information, institutional support and exogenous advantage are brought forward as the determinants of managerial considerations for MNCs strategic locations. Among them, the...
Loading next page...
 
/lp/taylor-francis/multinational-corporations-apos-mncs-strategic-location-and-the-ISbe0Ikfym
Publisher
Taylor & Francis
Copyright
Copyright Taylor & Francis Group, LLC
ISSN
2158-1762
eISSN
1022-5706
DOI
10.1080/10225706.2005.9684120
Publisher site
See Article on Publisher Site

Abstract

Abstract This paper builds a theoretical link between agglomeration economies of Multinational Corporations (MNCs) headquarters and the development of financial service centres, with special account in the extant literature of financial geography. Specifically, four distinctive factors, namely path dependency, asymmetric information, institutional support and exogenous advantage are brought forward as the determinants of managerial considerations for MNCs strategic locations. Among them, the factor of asymmetric information is argued as the key factor to drive geographic agglomerations of financial activities in China. To examine the validity of the theory, China's Beijing-Shanghai city-pair is presented as a case. A binary logistic regression model-test is applied to compare the locational behavior of MNCs regional headquarter in the two cities. Finally, a financial centre index (Findex) analysis which quantifies the significance of financial sectors in the city-pair is conducted. The results reveal that contrary to the traditional point of view, Beijing has more advantages than Shanghai in developing to be a strong service and financial centre in China.

Journal

Asian GeographerTaylor & Francis

Published: Jan 1, 2005

Keywords: strategic location; financial service centre; Beijing; Shanghai; China

There are no references for this article.