Transport and the location of foreign logistics firms: The Chinese experience

Based on conditional logit models and recent census data, this paper attempts to study the influence of transport and other factors on the location of foreign logistics firms across Chinese cities. The results suggested that the location of foreign logistics firms depended on transport conditions in terms of roadway, railway and waterway, as well as market size, labor quality, agglomeration economies and government incentives. The importance of transport was found to vary with some firm-specific characteristics. Provincial roadway transport was more important for independent logistics firms and overseas Chinese firms compared to their counterparts. New logistics establishments were more sensitive to roadway transport infrastructure than mature firms. The implications for policy-makers are given in the end.