IDEAS home Printed from https://ideas.repec.org/p/ags/iaae06/25307.html
   My bibliography  Save this paper

Agglomeration Effects and Japanese Food Industry Investment in China: Evidence from the Cities

Author

Listed:
  • Jin, Shaosheng
  • Tokunaga, Suminori
  • Akune, Yuko
  • Kageyama, Masahiro

Abstract

This paper uses the data from Chugoku Shinshutsu Kigyou Ichiran 2003-2004 (A View of Japanese Enterprises Investments in China 2003-2004) to study 1ocation choice of Japanese food industry investment in 231 Chinese cities from 1992 to 2001, paying a particular attention to agglomeration effects. A negative binominal model indicates that labor cost (WAGE) is the most important factor that deters Japanese food industry investment. Market size (GDP), raw material (MATER), port (PORT) and policy incentives (POLICY), however, have positive effects in Japanese food industry investment location choice in China. As for the three-tier agglomeration effects' test, the agglomeration effects of Japanese manufactures agglomeration (AG2) and Japanese food manufactures agglomeration (AG3) are confirmed, but not for foreign investment agglomeration (AG1).

Suggested Citation

  • Jin, Shaosheng & Tokunaga, Suminori & Akune, Yuko & Kageyama, Masahiro, 2006. "Agglomeration Effects and Japanese Food Industry Investment in China: Evidence from the Cities," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25307, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25307
    DOI: 10.22004/ag.econ.25307
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/25307/files/cp060458.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.25307?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, April.
    2. Tuan, Chyau & Ng, Linda F. Y., 2004. "Manufacturing agglomeration as incentives to Asian FDI in China after WTO," Journal of Asian Economics, Elsevier, vol. 15(4), pages 673-693, August.
    3. Cletus C. Coughlin & Eran Segev, 2000. "Foreign Direct Investment in China: A Spatial Econometric Study," The World Economy, Wiley Blackwell, vol. 23(1), pages 1-23, January.
    4. Cheng, Leonard K. & Kwan, Yum K., 2000. "What are the determinants of the location of foreign direct investment? The Chinese experience," Journal of International Economics, Elsevier, vol. 51(2), pages 379-400, August.
    5. Belderbos, Rene & Carree, Martin, 2002. "The Location of Japanese Investments in China: Agglomeration Effects, Keiretsu, and Firm Heterogeneity," Journal of the Japanese and International Economies, Elsevier, vol. 16(2), pages 194-211, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maria Ikegawa & Suminori Tokunaga, 2018. "Location choice for Japanese frozen food industry in East Asia using domestic market access with the penetration rate of refrigerators," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(1), pages 209-227, July.
    2. Suminori Tokunaga & Shaosheng Jin, 2011. "Market potential, agglomeration and location of Japanese manufacturers in China," Letters in Spatial and Resource Sciences, Springer, vol. 4(1), pages 9-19, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, George Shih-Ku, 2009. "Determinants of Taiwanese investment in China: An agglomeration economies-based perspective," MPRA Paper 13894, University Library of Munich, Germany.
    2. George Shih-Ku Chen, 2009. "Determinants Of Taiwanese Investment In China: An Agglomeration Economies-Based Perspective," Monash Economics Working Papers 01-09, Monash University, Department of Economics.
    3. Shaoming Cheng, 2008. "How can western China attract FDI? A case of Japanese investment," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 357-374, June.
    4. Shima'a Hanafy, 2015. "Determinants of FDI Location in Egypt—Empirical Analysis Using Governorate Panel Data," MAGKS Papers on Economics 201513, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. Shima’a Hanafy, 2014. "Determinants of FDI Location in Egypt: Empirical Analysis Using Governorate Panel Data," Working Papers 875, Economic Research Forum, revised Nov 2014.
    6. Blanc-Brude, Frédéric & Cookson, Graham & Piesse, Jenifer & Strange, Roger, 2014. "The FDI location decision: Distance and the effects of spatial dependence," International Business Review, Elsevier, vol. 23(4), pages 797-810.
    7. 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.
    8. repec:rre:publsh:v:38:y:2008:i:3:p:395-415 is not listed on IDEAS
    9. Hongzhong Fan & Shah Muhammad Kamran & Mingliang Li & Qiliang Zhou, 2017. "Congestion costs and differences in the regional distribution of FDI in China," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(4), pages 1789-1809, July.
    10. Martijn Boermans & Hein Roelfsema & Yi Zhang, 2011. "Regional determinants of FDI in China: a factor-based approach," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 9(1), pages 23-42.
    11. Roger Strange & Igor Filatotchev & Yung-chih Lien & Jenifer Piesse, 2009. "Insider Control and the FDI Location Decision," Management International Review, Springer, vol. 49(4), pages 433-454, September.
    12. Yi Liu & Cecil Pearson, 2011. "The Determining Factors of Western Australia’s (WA) Foreign Investment in China," Global Business Review, International Management Institute, vol. 12(1), pages 1-20, February.
    13. Shaoming Cheng, 2007. "Structure of Firm Location Choices: An Examination of Japanese Greenfield Investment in China," Asian Economic Journal, East Asian Economic Association, vol. 21(1), pages 47-73, March.
    14. Fetscherin, Marc & Voss, Hinrich & Gugler, Philippe, 2010. "30 Years of foreign direct investment to China: An interdisciplinary literature review," International Business Review, Elsevier, vol. 19(3), pages 235-246, June.
    15. Mary-Françoise RENARD & Nasser ARY TANIMOUNE, 2005. "FDI convergence and Spatial Dependence between Chinese Provinces," Working Papers 200531, CERDI.
    16. Du, Julan & Lu, Yi & Tao, Zhigang, 2012. "Institutions and FDI location choice: The role of cultural distances," Journal of Asian Economics, Elsevier, vol. 23(3), pages 210-223.
    17. Zhihua Xu & Anthony Yeh, 2013. "Origin Effects, Spatial Dynamics and Redistribution of FDI In Guangdong, China," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 104(4), pages 439-455, September.
    18. Julian Donaubauer & Christian Dreger, 2018. "The End of Cheap Labor: Are Foreign Investors Leaving China?," Asian Economic Papers, MIT Press, vol. 17(2), pages 94-107, Summer.
    19. Xuepeng Liu & Mary E. Lovel & Jan Ondrich, 2017. "Does Final Market Demand Elasticity Influence the Location of Export Processing? Evidence from Multinational Decisions in China," World Scientific Book Chapters, in: Mary E Lovely (ed.), International Economic Integration and Domestic Performance, chapter 12, pages 199-226, World Scientific Publishing Co. Pte. Ltd..
    20. Yuko Kinoshita & Nauro F. Campos, 2003. "Why Does Fdi Go Where it Goes? New Evidence From the Transition Economies," IMF Working Papers 2003/228, International Monetary Fund.
    21. Omar Belkhodja, 2016. "FDI Location Decision: Evidence from Firms Investing in China," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(6), pages 1-47, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae06:25307. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.