TITLE

Firm heterogeneity and location choice of Chinese Multinational Enterprises (MNEs)

AUTHOR(S)
Duanmu, Jing-Lin
PUB. DATE
January 2012
SOURCE
Journal of World Business;Jan2012, Vol. 47 Issue 1, p64
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Abstract: Using data on 194 location choices in 32 countries for a decade, we investigated locational determinants of Chinese Multinational Enterprises (MNEs). We found that State-Owned MNEs, compared to their peers without controlling state equity, are less concerned about political risk of the host country, but more responsive to favorable exchange rate between Chinese RMB and the host currency. Strategic intent of Chinese MNEs affects their location choice in a way that manufacturing oriented investment, compared to trading subsidiaries, is more attracted to countries with large market size and more deterred by high cost structure of the host country.
ACCESSION #
67250551

 

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