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Foreign Manufacturing Investment and Regional Industrial Growth in Guangdong Province, China

Author

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  • C K Leung

    (Department of Geography, California State University, Fresno, Fresno, CA 93740-0069, USA)

Abstract

In this paper, information from four major studies of Hong Kong's manufacturing investment in China, as well as published statistics concerning foreign investment in Guangdong, and data from a detailed investigation of seven manufacturing firms in Hong Kong are drawn upon in order to detail the locational and sectoral characteristics, the production and linkage attributes, and the regional economic impacts of foreign manufacturing investment in Guangdong Province, China. It is found that, geographically, foreign manufacturing investment clusters in Shenzhen and Guangzhou, with Dongguan, Huizhou, Zhuhai, and Shantou as the secondary centers of concentration. Sectorally, investment from Hong Kong is concentrated in the electronics, garment, and textiles industries, whereas investment from other countries is centered in electronics, construction materials, transport equipment, and chemical industries. Foreign manufacturing investment in Guangdong is directed at a diverse array of activities, of which a significant amount involves work that is technologically similar to that conducted in the source countries. These beneficial impacts are attributable primarily to the extensive production decentralization from Hong Kong, the social affinity between Hong Kong and the Zhujiang Delta, the ability of the state to control foreign investment flows, and the entrepreneurship and ingenuity of individual locales in the province. The impacts are especially concentrated in the Shenzhen region. This region, along with the Foshan and Guangzhou regions, is likely to become a major industrial district in Pacific Asia.

Suggested Citation

  • C K Leung, 1996. "Foreign Manufacturing Investment and Regional Industrial Growth in Guangdong Province, China," Environment and Planning A, , vol. 28(3), pages 513-536, March.
    • Handle: RePEc:sae:envira:v:28:y:1996:i:3:p:513-536
    DOI: 10.1068/a280513
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    References listed on IDEAS

    as
    1. Egan, Mary Lou & Mody, Ashoka, 1992. "Buyer-seller links in export development," World Development, Elsevier, vol. 20(3), pages 321-334, March.
    2. Tan Thiam Soon & Tan Chwee Huat, 1990. "Role of Transnational Corporations in Transfer of Technology to Singapore," Palgrave Macmillan Books, in: Manas Chatterji (ed.), Technology Transfer in the Developing Countries, chapter 26, pages 335-344, Palgrave Macmillan.
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    Cited by:

    1. Thompson, Edmund R., 2002. "Clustering of Foreign Direct Investment and Enhanced Technology Transfer: Evidence from Hong Kong Garment Firms in China," World Development, Elsevier, vol. 30(5), pages 873-889, May.
    2. Thi Xuan Thu Nguyen & Javier Revilla Diez, 2017. "Multinational enterprises and industrial spatial concentration patterns in the Red River Delta and Southeast Vietnam," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 101-138, July.
    3. Sevkiye Sence Turk & Lale Berkoz, 2005. "A Spatial Model Of Change Of Fdi Firm Population In Istanbul," ERSA conference papers ersa05p437, European Regional Science Association.
    4. Wenjun Jiao & Anthony M. Fuller & Siyuan Xu & Qingwen Min & Minfang Wu, 2016. "Socio-Ecological Adaptation of Agricultural Heritage Systems in Modern China: Three Cases in Qingtian County, Zhejiang Province," Sustainability, MDPI, vol. 8(12), pages 1-16, December.
    5. Lale Berkoz & Sevkiye Sence Turk, 2005. "Factors Influencing The Choice Of Fdi Locations In Turkey," ERSA conference papers ersa05p434, European Regional Science Association.

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