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1、PapersReg.Sci.82,351–372(2003)DOI:10.1007/s10110-003-0168-9cRSAI2003LocationofforeignmanufacturersinChina:AgglomerationeconomiesandcountryoforigineffectsCanfeiHeTheUniversityofMemphis,107JohnsonHall,Memphis,TN38152,USA(e-mail:canfeihe@memphis.edu)Received:7May2002/Accepted:12November
2、2002Abstract.UsingdatafromChina,thisarticlefindsthatagglomerationeconomiesderivedfromtheclusteringofmanufacturingandforeigninvestmentactivities,combinedwithbetteraccesstomarkets,influencethelocationofforeignmanufac-turers.Foreignenterprisesareattractedtocitieswithinvestmentincentives,but
3、theyavoidhighlabourcostlocations.Thelocationalpatternsalsosuggestcountryoforigineffects.American,HongKongandTaiwanesemanufacturerstendtovalueaccesstodomesticmarkets,whileJapaneseinvestorsfavourportcities.Furtheranalysisindicatesthepresenceoforiginofcountryeffectsatthesectorallevel.JELc
4、lassification:F23,O18,O53Keywords:Agglomerationeconomies,countryoforigineffects,China1IntroductionTheaccelerationofeconomicandpoliticalreformsintransitionaleconomieshasledtoasurgeininwardforeigndirectinvestment(FDI).MassiveflowsofFDIintoChinahaverecentlyreceivedagreatdealofattentionfroms
5、cholarsinthefieldsofbusiness,economicsandgeography.ManystudiesfocusonthelocationalchoicesofFDIactivitiesattheaggregatelevel,andhighlightthesignificanceofsometra-ditionallocationalfactors,suchasmarketsize,labourcosts,labourproductivity,economicgrowth,governmentalpolicies,andtransportation
6、linkages(Leung1990;Gong1995;Chen1996;BroadmanandSun1997;QuandGreen1997;Weietal.1999;ChengandKwan2000;CoughlinandSegev2000).Dunning(1998),how-ever,observesthatFDIhasfavouredthespatialclustersoffirmsengagedinrelatedSpecialthanksgotoJessiePoon,ZhaoyongZhang,Breand´anOhUallach´´ainandthree
7、anonymousreviewersfortheirconstructivecommentsandsuggestions.Anyremainingerrorsbelongtotheauthor.352C.Heactivities,becausemutualbenefitoccursfromsharedaccesstolocalisedsupportfacilities,sharedservicecentres,distributionnetworks,customiseddemandpat-ternsandspecialisedfactorinputs.UNCTA
