| Summary: | 碩士 === 銘傳大學 === 經濟學系碩士班 === 97 === This paper is a study of Taiwanese companies on the China mainland from the years 1991 through 2006. There is a focus on the three main Special Economic Zones (SEZs). The focal point of the analysis is location selection and product development influence. Because each economic center is designated as a specific areas of interest by the Chinese government, each center attracts different kinds of companies. Thus, this study uses the multinomial treatment effects model to analyze the effects of the companies on China’s economy. The results of the study show that the main factors that influence a Taiwanese company’s choice to invest in a Chinese cooperation are: differences in investment areas, manufacturer’s longevity, R&D intensity, capital labor ratio, operating costs, foreign investments, China’s infrastructure, total retail sales, labor quality in China, union organizations and labor productivity. Differences in production and/or economic centers should also be taken into account. Those SEZs with higher investment rates have a higher level of productivity and thus have an advantage over those areas with lower investment rates.
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