Journal of Geographical Sciences ›› 2019, Vol. 29 ›› Issue (8): 1396-1410.doi: 10.1007/s11442-019-1666-2
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LIANG Yutian1,2, ZHOU Zhengke1, LIU Yi3,*()
Received:
2018-08-09
Accepted:
2018-10-10
Online:
2019-08-25
Published:
2019-12-13
Contact:
LIU Yi
E-mail:liuyi89@mail.sysu.edu.cn
About author:
Liang Yutian (1982-), PhD and Associate Professor, specialized in economic geography and regional studies. E-mail: lytian@mail.sysu.edu.cn
Supported by:
LIANG Yutian, ZHOU Zhengke, LIU Yi. Location choices of Chinese enterprises in Southeast Asia: The role of overseas Chinese networks[J].Journal of Geographical Sciences, 2019, 29(8): 1396-1410.
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Table 1
Industrial structure and corporate function of Chinese investments in Southeast Asia"
Industrial classification | Number of companies | Share (%) |
---|---|---|
Leasing and business services | 2136 | 38.8 |
Financial services | 28 | 0.5 |
High-tech manufacturing | 514 | 9.4 |
Low-tech manufacturing | 1330 | 24.2 |
Medium-tech manufacturing | 728 | 13.3 |
Natural resources & energy | 445 | 8.1 |
Software & information & communications technology | 145 | 2.6 |
Transport services | 166 | 3 |
Functional classification | ||
Headquarters | 160 | 3 |
Logistics | 382 | 7 |
Production | 1152 | 21 |
Research & development | 322 | 5.9 |
Sales & marketing | 2692 | 49 |
Support & servicing | 784 | 14.3 |
Table 2
Population of overseas Chinese in Southeast Asia in 2015"
Country | Year | Number | A proportion of the local population (%) | Tightness |
---|---|---|---|---|
Indonesia | 2015 | 10,000,000 | 3.9 | 0.001283 |
Thailand | 2015 | 9,500,000 | 14 | 0.00462 |
Malaysia | 2015 | 7,500,000 | 24.7 | 0.008172 |
Singapore | 2015 | 3,500,000 | 63.2 | 0.020898 |
Myanmar | 2015 | 1,440,000 | 2.7 | 0.000883 |
Philippines | 2015 | 1,960,000 | 1.9 | 0.000643 |
Vietnam | 2015 | 2,610,000 | 2.8 | 0.000941 |
Cambodia | 2015 | 860,000 | 5.5 | 0.001825 |
Laos | 2015 | 190,000 | 2.8 | 0.000923 |
Brunei | 2015 | 58,230 | 14.8 | 0.004548 |
Table 3
Portfolio of the proposed variables in this study"
Name | Introduction | Mean | SD |
---|---|---|---|
Number of overseas Chinese (Chinnum) | The number of overseas Chinese in a Southeast Asian country | 3,761,823 | 3,615,877 |
Overseas Chinese communities (Chincomm) | If the number of overseas Chinese in Southeast Asia is more than 3437143, the value is 1. Otherwise, it is 0. | 0.4 | 0.49 |
Ratio of overseas Chinese (Chinrate) | The number of overseas Chinese in a Southeast Asian country versus the total population of the country | 0.14 | 0.18 |
Relationship density/tightness (Network) | The product of the proportion of overseas Chinese to the total population of country i in year t and the proportion of overseas Chinese to the total population of China in that year (t=2015) | 0.004 | 0.006 |
GDP | GDP of a Southeast Asian country in 2015 (one billion USD) | 243.81 | 246.11 |
Wage cost | Annual average wage of workers in a Southeast Asian country in 2015 (USD) | 8973.6 | 9780.98 |
Corporate tax rate | Corporate tax rate for a country in Southeast Asia in 2015 | 22.35 | 3.72 |
Volume of trade | Total trade with China in 2000 (USD) | 395,215.1 | 376293.8 |
Observations: 54,920 | Investment 5492 |
Table 4
Correlation test of the independent variables"
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | |
---|---|---|---|---|---|---|---|---|
In Chinnum | 1 | |||||||
Chincomm | 0.4745 | 1 | ||||||
Chinrate | 0.1823 | -0.1301 | 1 | |||||
Network | 0.1805 | -0.1306 | 1 | 1 | ||||
In GDP | 0.8793 | 0.3044 | 0.2089 | 0.2072 | 1 | |||
In cost | 0.0454 | -0.1436 | 0.8434 | 0.8431 | 0.2064 | 1 | ||
Tax | 0.2173 | -0.0187 | -0.5314 | -0.5335 | 0.2247 | -0.4994 | 1 | |
In trade | 0.8834 | 0.3214 | 0.3797 | 0.3780 | 0.9637 | 0.3603 | 0.0714 | 1 |
Table 5
Results of the mixed-logistic model for the location choices of Chinese corporate investments in Southeast Asia"
(1) | (2) | (3) | (4) | (5) | |
---|---|---|---|---|---|
In Chinnum | 0.0774*** | -0.391*** | |||
(-0.0431) | (-0.0973) | ||||
Chincomm | 0.197*** | 0.574*** | |||
(-0.0475) | (-0.106) | ||||
Chinrate | 5.294*** | ||||
(-0.228) | |||||
Network | 159.9*** | ||||
(-6.886) | |||||
In GDP | 0.0212 | -0.0601 | -0.301*** | 0.294*** | 0.294*** |
(-0.0488) | (-0.0474) | (-0.076) | (-0.0492) | (-0.0492) | |
In cost | -0.326*** | -0.419*** | -0.774*** | -1.377*** | -1.377*** |
(-0.039) | (-0.025) | (-0.0919) | (-0.0562) | (-0.0561) | |
Tax | -0.108*** | -0.106*** | -0.104*** | -0.0762*** | -0.0767*** |
(-0.00528) | (-0.00536) | (-0.00535) | (-0.006) | (-0.006) | |
In trade | 0.134** | 0.228*** | 0.685*** | -0.015 | -0.015 |
(-0.0627) | (-0.0379) | (-0.12) | (-0.0424) | (-0.0424) | |
Investments | 5492 | 5492 | 5492 | 5492 | 5492 |
Observations | 54920 | 54920 | 54920 | 54920 | 54920 |
Standard errors in parentheses | *** p<0.01, ** p<0.05, * p<0.1 |
Table 6
Regression results for Chinese corporate investments in Southeast Asia in different periods (1)"
(1) | (2) | (3) | |
---|---|---|---|
2001-2005 | 2006-2012 | 2013-2016 | |
In Chinnum | -0.594 | -0.988*** | 0.0152 |
(-0.626) | (-0.167) | (-0.126) | |
Chincomm | -0.107 | 0.687*** | 0.669*** |
(-0.655) | (-0.177) | (-0.139) | |
In GDP | 0.27 | -0.159 | -0.451*** |
(-0.478) | (-0.125) | (-0.0998) | |
In cost | -1.113* | -1.320*** | -0.339*** |
(-0.593) | (-0.157) | (-0.119) | |
Tax | -0.220*** | -0.144*** | -0.0694*** |
(-0.0326) | (-0.00835) | (-0.00729) | |
In trade | 0.649 | 1.060*** | 0.424*** |
(-0.765) | (-0.201) | (-0.156) | |
Investments | 179 | 2280 | 3033 |
Observations | 1790 | 22800 | 30330 |
Standard errors in parentheses | *** p<0.01, ** p<0.05, * p<0.1 |
Table 7
Regression results for Chinese corporate investments in Southeast Asia in different periods (2)"
(1) | (2) | (3) | ||||
---|---|---|---|---|---|---|
2001-2005 | 2001-2005 | 2006-2012 | 2006-2012 | 2013-2016 | 2013-2016 | |
Chinrate | 2.785** | 5.102*** | 5.631*** | |||
(-1.269) | (-0.342) | (-0.321) | ||||
Network | 83.28** | 153.2*** | 170.9*** | |||
(-38.21) | (-10.3) | (-9.718) | ||||
In GDP | 0.653** | 0.652** | 0.678*** | 0.677*** | -0.0048 | -0.00511 |
(-0.306) | (-0.306) | (-0.0772) | (-0.0771) | (-0.0665) | (-0.0665) | |
In cost | -1.288*** | -1.283*** | -1.414*** | -1.408*** | -1.379*** | -1.385*** |
(-0.299) | (-0.298) | (-0.0832) | (-0.0828) | (-0.08) | (-0.0801) | |
Tax | -0.227*** | -0.227*** | -0.123*** | -0.124*** | -0.0361*** | -0.0363*** |
(-0.0388) | (-0.0388) | (-0.00985) | (-0.00985) | (-0.00789) | (-0.0079) | |
In trade | -0.181 | -0.181 | -0.322*** | -0.322*** | 0.218*** | 0.218*** |
(-0.263) | (-0.263) | (-0.0654) | (-0.0654) | (-0.058) | (-0.058) | |
Investments | 179 | 179 | 2280 | 2280 | 3033 | 3033 |
Observations | 1790 | 1790 | 22800 | 22800 | 30330 | 30330 |
Standard errors in parentheses | *** p<0.01, ** p<0.05, * p<0.1 |
Table 8
Variation of the location choices in terms of industrial structure and corporate function"
(1) (Manufacturing) | (2) (Services) | (3) (Production) | (4) (Upstream and downstream ) | |
---|---|---|---|---|
In Chinnum | -0.017** | -0.708** | 0.222* | 0.493*** |
(-0.115) | (-0.182) | (-0.193) | (-0.113) | |
Chincomm | 0.0811* | 0.922*** | -0.212 | 0.719*** |
(-0.123) | (-0.202) | (-0.202) | (-0.124) | |
In GDP | -0.0876 | -0.289** | 0.362** | -0.419*** |
(-0.0932) | (-0.144) | (-0.159) | (-0.0878) | |
In cost | -0.720*** | -0.803*** | -0.761*** | -0.771*** |
(-0.105) | (-0.179) | (-0.175) | (-0.108) | |
Tax | -0.0855*** | -0.131*** | -0.124*** | -0.0990*** |
(-0.00724) | (-0.00833) | (-0.0123) | (-0.00601) | |
In trade | 0.197 | 1.050*** | -0.24 | 0.848*** |
(-0.142) | (-0.226) | (-0.24) | (-0.139) | |
Investments | 3017 | 2475 | 1152 | 4340 |
Observations | 30170 | 24750 | 11520 | 43400 |
Standard errors in parentheses | *** p<0.01, ** p<0.05, * p<0.1 |
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