Trade Costs and Location of Foreign Firms in China

This study examines the determinants of entry into 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.

Provided by: International Monetary Fund Topic: Software Date Added: Mar 2005 Format: PDF

Find By Topic