Abstract
Aims to evaluate the determinants of international pharmaceutical firms’ foreign direct investments (FDI) in the Chinese pharmaceutical manufacturing industry. Focuses on comparing the differences in FDIs between early entrants who started FDI before 1992 and the late entrants whose FDI started after 1992 in China. Field research was mainly conducted in China by personal interview as well as mail questionnaires over a period of three months in 1999 and 44 companies participated in total. The results of index of dissimilarity analysis, t‐test and Wilcoxon test consistently show that both early and late entrants are likely to agree that China’s huge market size played the most important role in motivating international pharmaceutical firms’ FDI in China. The results did not support the traditional FDI theories on domestic market imperfection and firm specific advantages.
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