The Location of Japanese Investments in China: Agglomeration Effects, Keiretsu, and Firm Heterogeneity

Conditional logit analysis of locational choices by Japanese electronics manufacturers in China's regions and provinces during 1990–1995 confirms a major impact of general industry, Japanese, and keiretsu-specific agglomeration benefits. The effects of key determinants of locational choice vary substantially by investor size and market orientation of manufacturing plants. Small and medium-sized enterprises are more sensitive to Japanese...