Comparison of investment preferences for international logistics zones in Kaohsiung, Hong Kong, and Shanghai ports from a Taiwanese manufacturer's perspective

Abstract

This research empirically evaluates international logistics zones in Kaoshiung, Hong Kong, and Shanghai ports based on the importance of investment criteria from the perspective of investors in Taiwanese manufacturing firms. Results suggest respondents viewed political stability as the most important investment criterion, followed by corporate tax incentives, government administration efficiency, labor cost, and energy cost. Shanghai Port's industrial logistics zone has a very strong competitive edge in cost, market, and industrial related criteria. The international logistics zones in Hong Kong and Kaohsiung ports have advantages in infrastructure, political, and financial related investment criteria. Respondents preferred to invest in the international logistics zone in Shanghai Port rather than that in Kaohsiung or Hong Kong Ports. Leasing factory buildings to operate their business in an international logistics zone was the preferred entry mode. Theoretical and practical implications of the research findings are discussed.