Trade Costs and Location of Foreign Firms in China

By M. Amiti, B. Javorcik. Social Science Research Network, 2005

320 citations recorded by the source corpus.

The authors examine the determinants of entry by foreign firms using information on 515 Chinese industries at the provincial level during 1998-2001. The analysis, rooted in the new economic geography, focuses on market and supplier access within and outside the province of entry, as well as production and trade costs. The results indicate that market and supplier access are the most important factors affecting foreign entry. Access to markets and suppliers in the province of entry matters more than access to the rest of China, which is consistent with market fragmentation due to underdeveloped transport infrastructure and informal trade barriers.

Subfields: Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/851d44a737f2a54bbae316b0fde6c022dbce98c0

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Citations in the corpus

FDI and environmental regulations in China (2008, background): “Coughlin and Segev 2000 ; Cheng and Kwan 2000 ; and Amiti and Javorcik, 2008 ).”
Can guanxi be a problem? Contexts, ties, and some unfavorable consequences of social capital in China (2010, background): “Foreign firms are concerned more about access to markets and suppliers in their location of entry than access to the rest of China ( Amiti & Javorcik, 2008 ).”
The FDI location decision: Distance and the effects of spatial dependence (2014, unknown): “and Lee (2007), Amiti and Javorcik (2008), Du, Lu, & Tao (2008a, 2008b), and Hong (2009)”
Economic Growth, Local Industrial Development and Inter-Regional Spillovers from Foreign Direct Investment: Evidence from China (2012, background): “6 Javorcik [8], Kugler [31], and Liu [32] use firmlevel data from Lithuania, Columbia, and China, respectively, and find a positive impact of FDI on domestic firms’ productivity.”
Are Foreign Investors Attracted to Weak Environmental Regulations? Evaluating the Evidence from China (2005, background): “4 In their investigation of FDI inflows to China, Amiti and Javorcik (2008) use more recent data that provide information on the number of foreign firms by province and by industry. These data are not publicly available. 5 The current study is a revised version of Dean et al. (2005). 6 In 2006, Chin”
Pollution Haven and Corruption Paradise (2017, unknown): “Indeed all the variables previously used are also included in the regression but in reason of identical results we only report the interaction term in Table (4).”
The Global Agglomeration of Multinational Firms (2014, background): “would like to obtain predicted values at more disaggregated geographic levels such as cities and provinces, the explanatory variables in equation (5) are mostly available only at the country level.”
The Location Choice of Foreign Direct Investments: Empirical Evidence and Methodological Challenges (2017, background): “Another study by Amiti and Javorcik (2008) pointed to the possible endogeneity of wages to foreign firm presence and to unobserved location-specific factors attracting both firms and workers.”
Environmental Regulations, Outward FDI and Heterogeneous Firms: Are Countries Used as Pollution Havens? (2012, background): “Kneller would suggest greater benefits to concentrating production, and thus by Brainard (1997) theory of a proximity-concentration trade-off, less FDI might be expected.”
Trust, Investment, and Business Contracting (2015, methodology): “In addition, we follow the literature on FDI (e.g., Du et al. (2008), Amiti and Javorcik (2008)) to control for the following factors in location choice: urbanization, infrastructure, education, wage, and industrial clustering.”
Industrial Location in Developing Countries (2008, background): “Amiti and Javorcik (2005) find that market and supplier access in the province of entry are the most important factors affecting foreign entry in China.”
FOREIGN DIRECT INVESTMENT AND URBAN CONCENTRATIONS: UNBUNDLING SPATIAL LAGS a (2009, unknown): “Coughlin and Segev (2000), however, offer within-country evide nce that US FDI in Chinese provinces is positively related to US FDI in neighboring provinces . Amiti and Javorcik (2008) find, using information on 515 Chinese industries at the provincial level during 1998-2001, tha t access to marke”