What do Firms Look for in Choosing Where to Locate: Does Land Transport Network Capacity Matter in China

This paper describes how logistic needs have created tremendous pressure on the “hard” transport infrastructure in recent years. It describes how logistics and the harness of information technology are key factors of mobility. This paper looks at the location of foreign logistics firms and identifies with the aid of a multinomial logit model factors that are crucial in attracting them to China. This is important as they have an important role to play in filling the gap left by traditional Chinese firms, which largely concentration on warehousing and distribution. The results suggest that location of logistics firms depends on transport infrastructure, market size, labor quality and cost, agglomeration economies, communication cost, economic privatization degree, as well as government incentives. The importance of the above factors varies by source of region. European and North American firms favor higher population densities, lower labor cost, convenient airway transport and large cities while logistics firms from Hong Kong, Macao and Taiwan put more emphasis on communication infrastructure.

Language

  • English

Media Info

  • Media Type: Print
  • Edition: Volume 1
  • Features: Figures; Maps; References; Tables;
  • Pagination: pp 32-55
  • Monograph Title: 3rd International Conference of Logistics & Sustainable Transport 2006

Subject/Index Terms

Filing Info

  • Accession Number: 01142379
  • Record Type: Publication
  • ISBN: 9789616562027
  • Files: TRIS
  • Created Date: Oct 21 2009 11:43AM