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Origin Effects, Spatial Dynamics and Redistribution of FDI I n G uangdong, C hina
Author(s) -
Xu Zhihua,
Yeh Anthony
Publication year - 2013
Publication title -
tijdschrift voor economische en sociale geografie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 55
eISSN - 1467-9663
pISSN - 0040-747X
DOI - 10.1111/tesg.12025
Subject(s) - redistribution (election) , foreign direct investment , economics , economies of agglomeration , wage , panel data , international economics , economic geography , monetary economics , labour economics , economic growth , political science , macroeconomics , econometrics , politics , law
Based on panel regression analysis and interviews of 70 foreign‐invested enterprises ( FIEs ) in 2009, this paper compares the spatial dynamics and redistribution of foreign direct investment ( FDI ) from H ong K ong, T aiwan, J apan and the US in G uangdong province. We found that FDI in G uangdong tends to favour cities closer to H ong K ong, with lower wage rates, better market potential and more preferential policies, and to follow the agglomeration of FDI from the same origin. The diverse home‐based characteristics have resulted into the varied pathways of spatial redistribution of FDI . H ong K ong FIEs have been searching for lower‐cost regions given the rise of production cost and tightened environmental regulation. In contrast, the redistribution of FIEs from J apan and T aiwan are more sensitive to their home‐based business linkages, whereas Japanese and the US FIEs tend to value access to domestic market and to expand in large cities outside G uangdong.