Internet Usage, High-Tech Talent and Location Choice: Evidence from Chinese ICT Investments in the United States

Abstract

Employing the micro data on China's Foreign Direct Investment(FDI) in the United States in the Information and Communications Technology (ICT) industry from 2001 to 2014, a negative binomial regression model is performed to examine the effects of internet usage and high-tech talent on ICT firms' location choice. Findings indicate that Internet usage in USA and Chinese ICT investment in the U. S. is not significantly related, namely China's ICT firms will not consider the internet usage in the U. S. while making the investment decision. Also, there is significant positive relationship between ICT firms' location choice and high-tech talent, which means that high-tech talent is an important factor in attracting Chinese cross-border investment in ICT industry.