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Roles of MNCs in Regional Development and their Locational Determinants : The Case of China

Graduate School of International Development. Nagoya University
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  • Political Science


This paper investigates the regional investment pattern of foreign and domestic firms in comparison to each other and identifies their locational determinants using the provincial data of China between 1994 and 2001. From the data, it is concluded that foreign firms tend to generate a high degree of agglomeration compared with local counterparts. Many of the least developed regions may become increasingly marginalized from the dynamics of international production unless conscious efforts are made both by the national and regional governments.

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