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The Annals of Regional Science

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01.06.2006 | Original Paper

Location decisions of Japanese new manufacturing plants in China: a discrete-choice analysis

verfasst von: Shaoming Cheng, Roger R. Stough

Erschienen in: The Annals of Regional Science | Ausgabe 2/2006

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Abstract

This paper adopts a conditional logit model to empirically examine the location choices of Japanese greenfield manufacturing foreign direct investment among Chinese provinces. It is hypothesized that its location decisions in China would be determined by the provinces’ market sizes, infrastructure capacities, labor, land, and energy costs, agglomeration effects, labor quality, and policy incentives. A Hausman–McFadden test is conducted to test whether the independence from irrelevant alternatives assumption of the conditional logit model is violated.

Vorheriger Artikel The relationship between the characteristics of transportation energy consumption and urban form

Nächster Artikel Introduction to the special issue: linking demand and supply in local labor market research

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Conditional logit model is slightly different from multinomial logit model, although they share the same mathematical expression. The major difference is that the conditional logit model only contains alternative-specific attributes, while the multinomial logit model may include both individual-specific and alternative-specific characteristics. For more information, please refer to Greene (2000).

Commonly cited example to explain the IIA assumption is the red/blue bus paradox. Please refer to Ben-Akiva and Lerman (1985) for more information.

Mixed logit model is also called random parameters logit and error components logit.

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Titel: Location decisions of Japanese new manufacturing plants in China: a discrete-choice analysis
verfasst von: Shaoming Cheng
Roger R. Stough
Publikationsdatum: 01.06.2006
Verlag: Springer-Verlag
Erschienen in: The Annals of Regional Science / Ausgabe 2/2006
Print ISSN: 0570-1864
Elektronische ISSN: 1432-0592
DOI: https://doi.org/10.1007/s00168-005-0052-4

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