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Firm-specific Effects on Location Decisions of Foreign Direct Investment in China's Logistics Industry

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  • Junjie Hong

Abstract

Hong J. (2007) Firm-specific effects on location decisions of foreign direct investment in China's logistics industry, Regional Studies 41, 673-683. This paper uses conditional logit models to investigate firms-specific effects on location decisions of foreign direct investment in China's logistics industry. Based on a recent census database, the empirical results indicate that the importance of some location factors varies with firm characteristics. Small logistics firms are more sensitive to labour cost than large companies. Compared with independent firms, branch companies are less responsive to local market demand and labour factors. Wholly owned foreign firms prefer cities with cheap labour; while joint ventures put more emphasis on local market demand. Investors from Hong Kong, Macao and Taiwan value local market size, while those from foreign countries emphasize cheap labour and convenient airway transport. Location determinants also vary over time and differ across sectors. Implications for researchers and policy-makers are also given. Hong J. (2007) L'investissement direct dans l'industrie de la logistique en Chine, Regional Studies 41, 673-683. Cet article emploie des modeles logit conditionnels pour examiner des effets specifiques aux entreprises suite a la prise de decison sur la localisation de l'investissement direct etranger dans l'industrie de la logistique en Chine. A partir d'un recensement recent, les resultats empiriques laissent voir que l'importance de certains facteurs de localisation varie suivant les caracteristiques de l'entreprise. Des petites entreprises dans l'industrie de la logistique s'averent plus sensibles au cout de la main-d'oeuvre que ne le sont les grandes entreprises du secteur. Par rapport aux entreprises individuelles, les etablissements des societes s'adapatent moins bien a la demande locale du marche et aux facteurs qui influent sur la main-d'oeuvre. Les entreprises a capital majoritaire etranger preferent les grandes villes a faible cout de main-d'oeuvre, tandis que les entreprises joint-venture mettent l'accent plutot sur la demande locale du marche. Les investisseurs en provenance du Hong-kong, du Macao et du Taiwan apprecient la taille du marche local, alors que les investisseurs des pays etrangers soulignent le faible cout de la main-d'oeuvre et la proximite des liaisons aeriennes. Les determinants de la localisation varient aussi dans le temps et a travers les secteurs. Pour conclure, on en fournit les implications pour les chercheurs et les decideurs. Logistique Investissement direct etranger Localisation Effets specifiques aux entreprises Chine Hong J. (2007) Direktinvestitionen in die Logistikbranche Chinas, Regional Studies 41, 673-683. In diesem Beitrag wird anhand konditionaler Logit-Modelle untersucht, welche firmenspezifischen Auswirkungen auslandische Direktinvestitionen in die Logistikbranche Chinas auf die Standortwahl haben. Die empirischen, aus einer aktuellen Erhebungsdatenbank gewonnenen Ergebnisse lassen darauf schliessen, dass die Bedeutung bestimmter Standortfaktoren von den Merkmalen der Firmen abhangt. Kleine Logistikfirmen sind gegenuber den Lohnkosten empfindlicher als Grossunternehmen. Im Vergleich zu unabhangigen Firmen reagieren Filialen langsamer auf den lokalen Marktbedarf und auf Lohnfaktoren. Firmen, die sich vollstandig in auslandischem Eigentum befinden, ziehen Stadte mit niedrigen Lohnkosten vor, wahrend Joint Ventures starker auf den lokalen Marktbedarf eingehen. Investoren aus Hongkong, Macau und Taiwan achten auf die Grosse des lokalen Markts, wahrend Investoren aus dem Ausland vor allem auf niedrige Lohnkosten und bequemen Lufttransport Wert legen. Die Standortdeterminanten sind ausserdem zeitabhangig und fallen je nach Sektor verschieden aus. Die Konsequenzen fur Forscher und Politiker werden am Ende aufgefuhrt. Logistik Auslandische Direktinvestitionen Standort Firmenspezifische Auswirkungen China Hong J. (2007) Inversion directa en la industria logistica de China, Regional Studies 41, 673-683. A fin de estudiar los efectos especificos en las decisiones de ubicacion a nivel de empresas que tiene la inversion directa extranjera en la industria logistica de China, para este ensayo utilizo modelos logit condicionales. Con ayuda de una base de datos reciente del censo, los resultados empiricos indican que la importancia de algunos factores de ubicacion varia en funcion de las caracteristicas de las empresas. Las empresas pequenas de logistica son mas sensibles al coste laboral que las grandes. Comparado con empresas independientes, las companias con sucursales son menos receptivas a la demanda del mercado local y a factores laborales. Las empresas extranjeras de corporacion propia prefieren ciudades con mano de obra barata mientras que las sociedades mixtas ponen mas enfasis en la demanda del mercado local. Los inversores de Hong Kong, Macao y Taiwan valoran el tamano del mercado local, mientras que los inversores de paises extranjeros dan prioridad a mano de obra barata y transporte comodo por rutas aereas. Los determinantes de ubicacion tambien varian con el tiempo y son diferentes en cada sector. Al final destaco las implicaciones que tienen estos factores para los investigadores y los responsables politicos. Logistica Inversion directa extranjera Ubicacion Efectos en empresas especificas China

Suggested Citation

  • Junjie Hong, 2007. "Firm-specific Effects on Location Decisions of Foreign Direct Investment in China's Logistics Industry," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 673-683.
    • Handle: RePEc:taf:regstd:v:41:y:2007:i:5:p:673-683
    DOI: 10.1080/00343400601120304
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    References listed on IDEAS

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    1. L. Nachum & C. Wymbs, 2002. "Firm-Specific Attributes and MNE Location Choices: Financial and Professional Service FDI To New York And London," Working Papers wp223, Centre for Business Research, University of Cambridge.
    2. Liu, Xiaming & Wang, Chengang & Wei, Yingqi, 2001. "Causal links between foreign direct investment and trade in China," China Economic Review, Elsevier, vol. 12(2-3), pages 190-202.
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    2. Elia, Stefano & Maggi, Elena & Mariotti, Ilaria, 2009. "Does the logistics sector gain from manufacturing internationalisation? An empirical investigation on the Italian case," Economics & Statistics Discussion Papers esdp09052, University of Molise, Department of Economics.
    3. Nielsen, Bo Bernhard & Asmussen, Christian Geisler & Weatherall, Cecilie Dohlmann, 2017. "The location choice of foreign direct investments: Empirical evidence and methodological challenges," Journal of World Business, Elsevier, vol. 52(1), pages 62-82.
    4. Shieh, Bih-Lian & Wu, Tzong-Chen, 2012. "Equity-based entry modes of the Greater Chinese Economic Area's foreign direct investments in Vietnam," International Business Review, Elsevier, vol. 21(3), pages 508-517.
    5. Jiao, Jingjuan & Zhao, Hongyu & Lyu, Guowei, 2024. "How does high-speed rail affect off-site investments? Evidence from the Yangtze River Delta, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 181(C).
    6. Tsekeris, Theodore, 2016. "Interregional trade network analysis for road freight transport in Greece," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 85(C), pages 132-148.
    7. Katiuscia Vaccarini, 2014. "Psychic distance and FDI: the case of China," Working Papers 1403, c.MET-05 - Centro Interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.
    8. Renato Redondi & Mariasole Bannò & Marco Mutinelli, 2011. "Air Connectivity and Foreign Direct Investments The economic effects of the introduction of new routes," ERSA conference papers ersa11p249, European Regional Science Association.
    9. Ali Durmuş & Sevkiye Sence Turk, 2014. "Factors Influencing Location Selection of Warehouses at the Intra-Urban Level: Istanbul Case," European Planning Studies, Taylor & Francis Journals, vol. 22(2), pages 268-292, February.
    10. Zheng, Dan & Shi, Minjun, 2018. "Industrial land policy, firm heterogeneity and firm location choice: Evidence from China," Land Use Policy, Elsevier, vol. 76(C), pages 58-67.
    11. Junjie Hong, 2007. "Location Determinants and Patterns of Foreign Logistics Services in Shanghai, China," The Service Industries Journal, Taylor & Francis Journals, vol. 27(4), pages 339-354, June.

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