Premium
Global‐local initiatives in FDI: The experience of Shenzhen, China
Author(s) -
Wang Mark Yaolin,
Meng Xiaochen
Publication year - 2004
Publication title -
asia pacific viewpoint
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.571
H-Index - 38
eISSN - 1467-8373
pISSN - 1360-7456
DOI - 10.1111/j.1467-8373.2004.00237.x
Subject(s) - foreign direct investment , multinational corporation , china , globalization , business , government (linguistics) , economic geography , locality , investment (military) , inward investment , international trade , economy , economic growth , market economy , economics , geography , political science , linguistics , philosophy , archaeology , finance , politics , law , macroeconomics
Abstract: In 2002, China surpassed the USA to become the world's largest foreign investment destination. Many Chinese cities, especially those along the coast, have become hot spots for Foreign Direct Investment (FDI). The urban development of these Chinese cities, as in most market societies, has increasingly depended upon their global connections. However, it is unclear to what degree the governments of these cities are able to influence the decisions of foreign investors. This paper uses Shenzhen city as a case study to examine how multi‐nationals’ spatial and sectoral patterns have been changed over time and to what degree the local government has been able to influence multinationals’ locational and sectoral selection. It is concluded that Shenzhen has managed to create a strategy to maximise its ability to benefit from global economic forces and to attract multinational manufacturers in the locality, and particularly in increasing its target sector of technology‐intensive industry. This case study demonstrates the importance of a strong city government in managing growth and reacting decisively to globalisation.