PROGRESS IN GEOGRAPHY ›› 2020, Vol. 39 ›› Issue (11): 1845-1859.doi: 10.18306/dlkxjz.2020.11.006

• Articles • Previous Articles     Next Articles

The same industry effect and the same source effect of Japanese companies in China: Take Beijing, Shanghai, Guangzhou and Shenzhen as examples

LIU Yuxiao(), WANG Maojun*()   

  1. College of Resource, Environment and Tourism, Capital Normal University, Beijing 100048, China
  • Received:2019-08-29 Revised:2019-12-06 Online:2020-11-28 Published:2021-01-28
  • Contact: WANG Maojun;
  • Supported by:
    National Natural Science Foundation of China(41771183);National Natural Science Foundation of China(41571154)


The distribution of Japanese foreign direct investment (FDI) companies in China is extremely uneven and these companies are highly concentrated in the Beijing, Shanghai, and Guangzhou-Shenzhen regions. Traditional FDI research has always focused on how urban attributes and conditions affect the location choice of companies. But the role of spatial agglomeration should be equally concerned. Existing research on agglomeration has shortcomings, such as homogenizing FDI and lack of detailed classification of industries, which lead to significant differences in the results of the studies. Whether companies will follow the investment location choice of other companies with the same source country has not received enough attention. At the same time, there is insufficient attention to the similarities and differences of typical urban agglomerations. To address these issues, based on the research of agglomeration and by focusing on typical cities where Japanese companies are concentrated, this study compared and analyzed the same industry agglomeration effect and the same source agglomeration effect. Using the FDI enterprise data of Japan in Beijing, Shanghai, and Guangzhou-Shenzhen in 1984 to 2017 and the multivariate logistic regression analysis method, with Guangzhou-Shenzhen as the reference region, we established the same industry agglomeration effect model and the same source agglomeration effect model, which includes seven equations each. Enterprise heterogeneity control variables such as industry and value chain links, entry mode, and entry time were added to the model to compare and analyze similarities and differences between Beijing, Shanghai, and Guangzhou-Shenzhen. The results show that the similarities and differences of the same industrial agglomeration effect and the agglomeration effects of the same source are obvious for Japanese companies in typical cities in China. Specifically: 1) Shanghai's same industrial agglomeration and cross-industry agglomeration are the most significant, and the results are stable. Guangzhou-Shenzhen's same industrial agglomeration is slightly stronger than Beijing, but the results are less robust. 2) The results of Shanghai's same source agglomeration are stable and significant and the agglomeration effect of enterprises is strong. The difference between Beijing and Guangzhou-Shenzhen is small. 3) The introduction of enterprise attribute variables has effectively improved the explanatory power of the model. The entry time of Japanese companies in Shanghai is earlier, and the overall size of enterprises across the country is not much different. The entry mode of Japanese enterprises in Shanghai is mainly sole proprietorship. In Beijing and Guangzhou-Shenzhen these companies are mainly joint ventures, but the increasing trend of sole proprietorship is obvious. The proportion of companies in the service industry is relatively high in Beijing, and the number of manufacturing companies is the largest in Guangzhou-Shenzhen. The Japanese companies in Guangzhou-Shenzhen and Shanghai focus on manufacturing or import and export trade in the industrial chain, and the number of companies specializing in business services and research and development is the highest in Beijing.

Key words: foreign direct investment (FDI), agglomeration, the same industry effect, the same source effect, company heterogeneity