The Empirical of Determinant Factors of Taiwanese Enterprises Investing in China-The Case of Taiwan''s Information Technology Firms

• Main Authors: I-Hsiu Lai, 賴怡秀
• Other Authors: Feng-Jyh Lin
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/43612950509219573022

碩士 === 逢甲大學 === 企業管理所 === 95 === Under China’s “open door policy,” many preferences, such as lower costs of land, raw material, and labor, are provided to call for foreign direct investment. These incentives induced the transfer of production line from home country to China. Not only multinational firms but also Taiwan’s and Hong Kong’s participated in this transfer. The investment inflow offered a lot of employment opportunity as well as rapid economic growth. Besides, in order to join World Trade Organization, China needs to further release regulations to conform the spirit of trade liberalizations. Therefore, China has become an emerging competition markets. The studies about foreign direct investments in China have been explored in many aspects. The purpose of this study is to find out the determinants of Taiwan’s Information technology firms investing in China. This study distinguishes factors of affecting FDI into internal and external factors. Internal factors include export-orientation, firm size, firm performance, R&D expense, capital intensities, and investing experience in Asia. External factors include network linkage, market expansion, and open policy of government. The samples in this study are Taiwan’s information technology firms listed on Taiwan Economic Journal. The duration spans from 1996 to 2005 with 3,363 observations. The software SPSS is used to apply Cox Hazard Model on these panel data. We found that, higher export-orientation and greater firm size, firms will be more willing to invest in China. External factors including network linkage, market expansion and open policy of government are significantly positive effects on foreign direct investment.