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The role of labour cost in the location choices of Japanese investors in China.
- Source :
- Papers in Regional Science; 2006, Vol. 85 Issue 1, p121-138, 18p, 4 Charts
- Publication Year :
- 2006
-
Abstract
- This article attempts to reconcile previous conflicting findings about the effects of labour cost on the location decisions of foreign investors in China. A conditional logit model is calibrated with its compatible disaggregated firm-level Japanese FDI data. It is hypothesised that previous counter-intuitively positive relationships between labour cost and incoming FDI in China may result from the failures to properly control spatial inflation differentials, labour quality, and quality of life. A Hausman-McFadden test is also conducted to test the robustness of the calibrated models. [ABSTRACT FROM AUTHOR]
- Subjects :
- LABOR costs
FOREIGN investments
INTERNATIONAL economic relations
Subjects
Details
- Language :
- English
- ISSN :
- 10568190
- Volume :
- 85
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Papers in Regional Science
- Publication Type :
- Academic Journal
- Accession number :
- 21358142
- Full Text :
- https://doi.org/10.1111/j.1435-5957.2006.00066.x