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    Motives of foreign pharmaceutical firms' FDI in China: a comparison between eastern and western firms

    170884_44445_JIBE 1544 8037.pdf (367.3Kb)
    Access Status
    Open access
    Authors
    Jiang, Fuming
    Liu, L.
    Date
    2004
    Type
    Journal Article
    
    Metadata
    Show full item record
    Citation
    Jiang, Fuming and Liu, Lixian. 2004. Motives of foreign pharmaceutical firms' FDI in China: a comparison between eastern and western firms. Journal of International Business and Economics. 1 (1): pp. 162-167.
    Source Title
    Journal of International Business and Economics
    ISSN
    15448037
    School
    School of Management
    URI
    http://hdl.handle.net/20.500.11937/44835
    Collection
    • Curtin Research Publications
    Abstract

    This study examined the determinants of foreign pharmaceutical firms' foreign direct investments (FDI) in China, and compared FDI determinants between eastern and western pharmaceutical firms. The analysis suggested that foreign pharmaceutical firms' FDI in China was determined by China's specific advantages, and China's market size played the most important role. China's incentive policy received moderate attention, and low labour cost was not a significant consideration. The results did not support the traditional FDI theories of market imperfection and firm specific advantages. The results also showed that eastern firms had a tendency to agree that the incentive policies was one of the China's specific attractions which attracted their FDI to China, whereas, western firms tended to disagree. Both eastern and western firms were unlikely to consider China's low labour cost as an important factor in their decision to invest in China, this being even more so for western firms.

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