Transnational electronic information corporations´ location choice in China and its determinants based on GVC

Based on the global value chain (GVC) theory and the location theory of transnational corporations (TNCs), and using the database of TNCs listing in “2010 Fortune 500”, this paper conducts Random-effect panel Logit model to test empirically the main determinants of location choices conducted by affiliates of electronic information industry manufacturing fragment, R&D fragment and managing fragment within China´s 30 provinces over the period 1994-2010. The research results clearly indicate that affiliates of internal industrial chain will consider similar factors when they conduct the location choice in China while the emphasis point has many differences. Market scale, market potential, human capital, port location distribution and institutional factors are the common location determinants, Wage level is the most different effects to these three value-added phases of location choice, and cheap labor force is an important factor for appealing electronic information multinational company manufacturing fragment, while towards other two links of location choice, it has non-significant effects.