IDEAS home Printed from https://ideas.repec.org/a/bla/buecrs/v74y2022i2p405-420.html
   My bibliography  Save this article

Spatial location of new foreign firms in Shanghai under the transformation of urban development

Author

Listed:
  • Kai Li
  • Yunzhi Zhang
  • Wensi Wang
  • Yonglei Jiang
  • Hexin Zhang

Abstract

With the continuous development of Shanghai, urban construction has changed the geographical location choices of foreign enterprises. This paper uses spatial econometric methods to analyze the preferences of foreign companies when choosing addresses by considering location factors and aggregation factors. The results show that Shanghai's newly introduced foreign‐funded enterprises are mainly concentrated in six industries, including wholesale and retail, manufacturing, leasing, and commercial services, and the geographic spatial distribution of new foreign enterprises in Shanghai shows “central concentration and peripheral dispersion.” There is an obvious inverted U‐shaped pattern in this phenomenon. Among the location factors, distance from the airport is an important factor that affects the location choice of enterprises. In addition, agglomeration factors have different effects on the location models of new enterprises in six industries.

Suggested Citation

  • Kai Li & Yunzhi Zhang & Wensi Wang & Yonglei Jiang & Hexin Zhang, 2022. "Spatial location of new foreign firms in Shanghai under the transformation of urban development," Bulletin of Economic Research, Wiley Blackwell, vol. 74(2), pages 405-420, April.
    • Handle: RePEc:bla:buecrs:v:74:y:2022:i:2:p:405-420
    DOI: 10.1111/boer.12300
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/boer.12300
    Download Restriction: no
    File URL: https://libkey.io/10.1111/boer.12300?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bramanti, Alberto & Girardi, Riccardo, 1994. "New Firm Location: An Equilibrium Model and Its Disequilibrium Dynamics," Small Business Economics, Springer, vol. 6(2), pages 151-163, April.
    2. Giuseppe Arbia & Massimiliano Copetti & Peter Diggle, 2009. "Modelling Individual Behaviour of Firms in the Study of Spatial Concentration," Advances in Spatial Science, in: Ugo Fratesi & Lanfranco Senn (ed.), Growth and Innovation of Competitive Regions, pages 297-327, Springer.
    3. Oum, Tae Hoon & Park, Jong-Hun, 2004. "Multinational firms' location preference for regional distribution centers: focus on the Northeast Asian region," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(2), pages 101-121, March.
    4. Krugman, Paul, 1991. "History and Industry Location: The Case of the Manufacturing Belt," American Economic Review, American Economic Association, vol. 81(2), pages 80-83, May.
    5. Baozhen Yao & Bin Yu & Ping Hu & Junjie Gao & Mingheng Zhang, 2016. "An improved particle swarm optimization for carton heterogeneous vehicle routing problem with a collection depot," Annals of Operations Research, Springer, vol. 242(2), pages 303-320, July.
    6. Giuseppe Arbia & Giuseppe Espa & Danny Quah, 2009. "A class of spatial econometric methods in the empirical analysis of clusters of firms in the space," Studies in Empirical Economics, in: Giuseppe Arbia & Badi H. Baltagi (ed.), Spatial Econometrics, pages 81-103, Springer.
    7. Urata, Shujiro & Kawai, Hiroki, 2000. "The Determinants of the Location of Foreign Direct Investment by Japanese Small and Medium-Sized Enterprises," Small Business Economics, Springer, vol. 15(2), pages 79-103, September.
    8. Shujiro Urata & Hiroki Kawai, 2000. "The Determinants of the Location of Foreign Direct Investment by Japanese Small and Medium-sized Enterprises (in Japanese)," Economic Analysis, Economic and Social Research Institute (ESRI), vol. 158, pages 3-21, January.
    9. Eric A. Nerlinger & Franz-Josef Bade, 2000. "The spatial distribution of new technology-based firms: Empirical results for West-Germany," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(2), pages 155-176.
    10. Devereux, Michael P. & Griffith, Rachel & Simpson, Helen, 2007. "Firm location decisions, regional grants and agglomeration externalities," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 413-435, April.
    11. Ran Barniv & Anurag Agarwal & Robert Leach, 2002. "Predicting Bankruptcy Resolution," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 29(3&4), pages 497-520.
    12. Sridhar, Kala Seetharam & Wan, Guanghua, 2010. "Firm location choice in cities: Evidence from China, India, and Brazil," China Economic Review, Elsevier, vol. 21(1), pages 113-122, March.
    13. Ran Barniv & Anurag Agarwal & Robert Leach, 2002. "Predicting Bankruptcy Resolution," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 29(3‐4), pages 497-520, April.
    14. Aleid E. Brouwer & Ilaria Mariotti & Jos N. van Ommeren, 2004. "The firm relocation decision: An empirical investigation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 335-347, June.
    15. Sun, Daniel (Jian) & Guan, Shituo, 2016. "Measuring vulnerability of urban metro network from line operation perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 348-359.
    16. Hanna Maoh & Pavlos Kanaroglou, 2007. "Geographic clustering of firms and urban form: a multivariate analysis," Journal of Geographical Systems, Springer, vol. 9(1), pages 29-52, April.
    17. Ambrose, Brent W & Springer, Thomas M, 1993. "Spatial Variation of Nonmetropolitan Industrial Location," The Journal of Real Estate Finance and Economics, Springer, vol. 7(1), pages 17-27, July.
    18. Hu Shao & William Lam & Mei Tam, 2006. "A Reliability-Based Stochastic Traffic Assignment Model for Network with Multiple User Classes under Uncertainty in Demand," Networks and Spatial Economics, Springer, vol. 6(3), pages 173-204, September.
    19. Pamela Mueller & André Stel & David Storey, 2008. "The effects of new firm formation on regional development over time: The case of Great Britain," Small Business Economics, Springer, vol. 30(1), pages 59-71, January.
    20. Frank G. van Oort & Oedzge A. L. C. Atzema, 2004. "On the conceptualization of agglomeration economies: The case of new firm formation in the Dutch ICT sector," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 263-290, June.
    21. Jiang, Yonglei & Sheu, Jiuh-Biing & Peng, Zixuan & Yu, Bin, 2018. "Hinterland patterns of China Railway (CR) express in China under the Belt and Road Initiative: A preliminary analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 119(C), pages 189-201.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hao-Chen Huang & Hsin-Yin Chang & Ting-Hsiu Liao, 2023. "Analyzing the Impact of the Labor Market on Company Location Selection Using Spatial Econometric Models," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(6), pages 1-9.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eickelpasch, Alexander & Hirte, Georg & Stephan, Andreas, 2016. "Firms' Evaluation of Location Quality: Evidence from East Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 236(2), pages 241-273.
    2. Vanessa Hellwig, 2023. "Digital gravity? Firm birth and relocation patterns of young digital firms in Germany," Journal of Regional Science, Wiley Blackwell, vol. 63(2), pages 340-378, March.
    3. Zixuan Peng & Wenxuan Shan & Peng Jia & Bin Yu & Yonglei Jiang & Baozhen Yao, 2020. "Stable ride-sharing matching for the commuters with payment design," Transportation, Springer, vol. 47(1), pages 1-21, February.
    4. Tidiane KINDA, 2010. "Increasing Private Capital Flows To Developing Countries: The Role Of Physical And Financial Infrastructure In 58 Countries, 1970-2003," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(2).
    5. Kolstad, Ivar & Villanger, Espen, 2008. "Determinants of foreign direct investment in services," European Journal of Political Economy, Elsevier, vol. 24(2), pages 518-533, June.
    6. Santos, Eleonora & Khan, Shahed, 2019. "FDI Policies and Catching-Up," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 0(7(61)), pages 1821-1853.
    7. Lara Abdel Fattah & Sylvain Barthélémy & Nadine Levratto & Benjamin Trempont, 2016. "Post-reorganization survival: a semi-parametric and non-parametric analysis of firm characteristics," EconomiX Working Papers 2016-22, University of Paris Nanterre, EconomiX.
    8. Camacho-Miñano, María-del-Mar & Campa, Domenico, 2014. "Integrity of financial information as a determinant of the outcome of a bankruptcy procedure," International Review of Law and Economics, Elsevier, vol. 37(C), pages 76-85.
    9. Mitroussi, K. & Abouarghoub, W. & Haider, J.J. & Pettit, S.J. & Tigka, N., 2016. "Performance drivers of shipping loans: An empirical investigation," International Journal of Production Economics, Elsevier, vol. 171(P3), pages 438-452.
    10. Arauzo-Carod, Josep-Maria & Manjón-Antolín, Miguel & Martínez , Óscar, 2015. "The Relocation of R&D Establishments in France: An Empirical Analysis," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 33, pages 97-119.
    11. Jane Haider & Zhirong Ou & Stephen Pettit, 2019. "Predicting corporate failure for listed shipping companies," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(3), pages 415-438, September.
    12. Heinz Hollenstein, 2001. "Patterns and Determinants of International Activities: Are SMEs Different?," WIFO Working Papers 155, WIFO.
    13. Gnagne, Pascal Xavier & Bonga-Bonga, Lumengo, 2020. "The Impact of Exchange Rate Volatility on the Security Markets in BRICS Economies," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 73(1), pages 21-50.
    14. Bonga-Bonga, Lumengo & Gnagne, Pascal Xavier, 2017. "The impact of exchange rate volatility on capital flows in BRICS economies," MPRA Paper 84773, University Library of Munich, Germany.
    15. Maroula Khraiche & Jeffrey Gaudette, 2013. "FDI, Exchange Rate Volatility and Financial Development: Regional Differences In Emerging Economies," Economics Bulletin, AccessEcon, vol. 33(4), pages 3143-3156.
    16. Otto Raspe & Frank Oort, 2011. "Growth of new firms and spatially bounded knowledge externalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 495-518, June.
    17. Halford, Joseph T. & Li, Chengcheng, 2020. "Political connections and debt restructurings," Journal of Corporate Finance, Elsevier, vol. 65(C).
    18. Hanna Maoh & Pavlos Kanaroglou, 2007. "Business establishment mobility behavior in urban areas: a microanalytical model for the City of Hamilton in Ontario, Canada," Journal of Geographical Systems, Springer, vol. 9(3), pages 229-252, September.
    19. Kinda, Tidiane, 2010. "Investment Climate and FDI in Developing Countries: Firm-Level Evidence," World Development, Elsevier, vol. 38(4), pages 498-513, April.
    20. Muhammad Khan & Arslan Tariq Rana & Wafa Ghardallou, 2023. "FDI and CO2 emissions in developing countries: the role of human capital," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 117(1), pages 1125-1155, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:buecrs:v:74:y:2022:i:2:p:405-420. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0307-3378 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.