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Whether a firm is able to attract foreign capital and whether it may participate at the export market depends on whether the fixed costs associated with doing so are at least covered by the incremental operating profits. This paper provides evidence that success for some firms in attracting...
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attraction of low wages for investors from Hong Kong, Macao, and Taiwan, who are most likely to use China as an export platform …Although studies of aggregate investment flows provide consistent evidence that capital is attracted to low wages … provincial location choices of firms investing in China during 1993-1996 to offer two main contributions. First, using data on …
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