Stability analysis of Taiwanese and Japanese outward FDI in China: Evidence from duration and survival in food industry.

• Main Authors: CIAO-RU JIAN, 簡巧如
• Other Authors: 魏中瑄
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/69d9m8

碩士 === 國立臺中科技大學 === 財務金融系碩士班 === 102 === The main purpose of the thesis is to study the stability analysis of Taiwanese outward foreign direct investment（FDI）in China and compare with Japanese case. Survival analysis is applied to examine the duration and stability of outward FDI. As a first step, the thesis employs the Kaplan-Meier method to estimate the survival curves of Taiwanese and Japanese outward FDI in China''s food industry, and finding the survival rates are higher for Taiwanese than Japanese during the period of 2003-2012, especially in the end year of the sample, the hazard rates are 67.7% and 47.4% for Taiwanese and Japanese, respectively. As a second step, the thesis employs the Cox proportional hazard model to examine the factors that may affect the duration and stability of FDI. Empirical results find evidence of a positive and significant relationship between R&;D expenditure/domestic investment and the hazard rate. This implys that Japanese with greater R&;D expenditure and domestic investment would decrease the survival of FDI in China. On the contrary, the significant negative relationship between Taiwanese R&;D expenditure/domestic investment and the hazard rate implys that Taiwanese with greater R&;D expenditure and domestic investment would enhance the survival of FDI in China. Therefore, the thesis presents the survival rates of Taiwanese outward FDI in China’s food industry is higher than Japanese case due to technology spillover that previous studies point out.