| Budget Amount *help |
¥1,800,000 (Direct Cost: ¥1,800,000)
Fiscal Year 2006: ¥500,000 (Direct Cost: ¥500,000)
Fiscal Year 2005: ¥700,000 (Direct Cost: ¥700,000)
Fiscal Year 2004: ¥600,000 (Direct Cost: ¥600,000)
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| Research Abstract |
As firms from all over the world have been investing in China, Japanese and Taiwanese firms have also followed in this trend. Based on an analysis of 2951 overseas subsidiaries of Japanese firms that invest in 28 provinces (municipalities) and 1287 overseas subsidiaries of Taiwanese firms investing in 26 provinces (municipalities) in China, this research studies which sectors, regions and when these Japanese and Taiwanese enterprises entered. Moreover, a location choice model of four independent latent variables composed of 12 factors measuring regional competitive advantage was built and then tested against a pooled cross-sectional and time-series dataset using multivariate statistical analyses.
The findings show that the model is valid in explaining the location choice behavior of Japanese and Taiwanese firms targeting China. For Japanese firms, the hypotheses regarding investment conditions, economic conditions and working conditions were supported, which means that the better the fi
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rst of these two conditions of a region are, the more likely Japanese firms would enter. Inversely, the better the working conditions of a region, the less likely Japanese firms would invest in that region. However, contrary to expectations, the hypothesis regarding fundamental conditions showed the perplexing result that better fundamental conditions of a region deterred Japanese firms from entering that region. Regarding Taiwanese firms, findings of this study suggest that FDI location choice is influenced by investment conditions and working conditions rather than economic conditions and fundamental conditions. Moreover, investment conditions assert more influence on the firms' location choices than working conditions. Furthermore, results suggest that the influence of investment conditions on location choice is positive but the influence of working conditions, negative.
To summarize, the findings of the study help to enhance our understanding of the pattern of location choice of Japanese and Taiwanese firms targeting China as well as uncover the relationship between their choice and regional competitive advantage. Less
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