Amiti, MarySmarzynska Javorcik, Beata2012-03-302012-03-302008Journal of Development Economics03043878https://hdl.handle.net/10986/5670This study examines the determinants of entry by foreign firms, using information on 515 Chinese industries at the provincial level during 1998-2001. The analysis is based on new economic geography theory and thus focuses on market and supplier access within and outside the province of entry, as well as production and trade costs. The results indicate that market and supplier access are the most important factors affecting foreign entry. Access to markets and suppliers in the province of entry matters more than access to the rest of China, which is consistent with market fragmentation due to underdeveloped transport infrastructure and informal trade barriers.ENInternational InvestmentLong-term Capital Movements F210Multinational FirmsInternational Business F230Production, Pricing, and Market StructureSize Distribution of Firms L110Industry Studies: Manufacturing: General L600Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics P250Socialist Institutions and Their Transitions: International Trade, Finance, Investment, and Aid P330Other Production and Pricing Analysis R320Journal ArticleWorld Bank