This paper investigates whether and why the Taiwanese investors in mainland China are pursuing a different location selection strategy from other foreign direct investors. I find that, compared to the general foreign direct investors, Taiwanese direct investors seem to be more dependent on the autonomy of local governments, especially as investment in a locality increases.

Keywords:
mainland China, Taiwan, foreign direct investment, Taiwanese direct investment, local government autonomy
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© 2015 by the Regents of the University of California
2015
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