Amiti, MaryJavorcik, Beata Smarzynska2012-06-252012-06-252005-04https://hdl.handle.net/10986/8989The authors examine the determinants of entry by foreign firms using information on 515 Chinese industries at the provincial level during 1998-2001. The analysis, rooted in the new economic geography, 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.CC BY 3.0 IGOACCESS TO MARKETSAGGREGATE DEMANDAGRICULTUREAUDITSAVERAGE TARIFFBARRIERS TO ENTRYBORDER BARRIERSCOMMERCECOMPARATIVE ADVANTAGECOMPETITIVENESSCONSUMER GOODSCONSUMERSCUSTOMSDOMESTIC FIRMSDUTY DRAWBACKSDYNAMIC EFFECTSECONOMIC ANALYSISECONOMIC GEOGRAPHYECONOMIC GROWTHECONOMIC IMPACTECONOMIC RELATIONSELASTICITYELASTICITY OF SUBSTITUTIONEMPIRICAL ANALYSISEMPLOYMENTEQUILIBRIUMEXPORT COMPETITIVENESSEXPORTSFACTOR PRICESFACTORS OF PRODUCTIONFINAL GOODSFISHFOREIGN DIRECT INVESTMENTFOREIGN ENTRYFOREIGN FIRMSFOREIGN INVESTMENTFOREIGN INVESTORSFOREIGN PRODUCERSFOREIGN TRADEFREE ENTRYFREE TRADEGDPGROWTH RATEHIGH TARIFFSIMPORTED INPUTSIMPORTED INTERMEDIATEIMPORTED INTERMEDIATESIMPORTSINTERMEDIATE INPUTSINTERNAL MARKETINTERNAL TRADEINTERNAL TRADE BARRIERSINTERNATIONAL ECONOMICSINTERNATIONAL TRADEINVESTMENT CLIMATEINVESTMENT DECISIONINVESTMENT FLOWSLABOR COSTSMARGINAL COSTMARGINAL COST CONDITIONMARGINAL REVENUEMARKET ACCESSMARKET ACCESS EFFECTMARKET DEVELOPMENTMARKET FRAGMENTATIONMARKET INTEGRATIONMARKET POTENTIALMARKET POWERMARKET SIZEMARKET SIZE EFFECTSMULTINATIONAL ENTERPRISESMULTINATIONAL FIRMSNATIONAL MARKETNATIONAL OUTPUTOPENNESSPOLICY INSTRUMENTSPOLLUTIONPOSITIVE EXTERNALITIESPRICE INDEXPRODUCTION COSTSPRODUCTIVITYPROFIT MAXIMIZATIONPROTECTIONISMREGIONAL DEVELOPMENTREGIONAL INTEGRATIONSPECIALIZATIONSTANDARD ERRORSSTOCKSSUPPLIERSTARIFF RATESTAX INCENTIVESTOTAL OUTPUTTOTAL REVENUETRADE BARRIERSTRADE COSTSTRADE DATATRADE RESTRICTIONSTRADE THEORYTRANSNATIONAL CORPORATIONSTRANSPORT COSTTRANSPORT COSTSUTILITY FUNCTIONVALUE OF EXPORTSVALUE OF OUTPUTWAGESWORLD INVESTMENTZERO PROFITSWorld Bank10.1596/1813-9450-3564