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The Functional and Sectoral Division of Labour between Hong Kong and the Pearl River Delta: From Complementarities in Production to Competition in Producer Services?

Author

Listed:
  • Daniel Schiller

    (Lower Saxony Institute for Economic Research (NIW), Koenigstrasse 53, 30175 Hannover, Germany)

  • Martijn J Burger

    (Department of Applied Economics, Erasmus University Rotterdam, PO Box 1738, NL-3000 Rotterdam, The Netherlands, and Tinbergen Institute, Rotterdam, Netherlands)

  • Bas Karreman

    (Department of Applied Economics, Erasmus University Rotterdam, PO Box 1738, NL-3000 Rotterdam, The Netherlands, and Tinbergen Institute, and Erasmus Research Institute of Management, Netherlands)

Abstract

This study examines whether regional upgrading has affected the traditional division of labour between Hong Kong and the Pearl River Delta, as exemplified in the ‘front shop–back factory’ model. The location choices and investment characteristics of foreign multinational enterprises are used to derive the current status of sectoral and functional specialisation across the region and to explore the alleged competition over foreign direct investments in service functions. The results show that the complementary roles of Hong Kong and the Pearl River Delta, in terms of sectoral and functional specialisation, remain largely intact. However, Guangzhou and Shenzhen appear to compete with Hong Kong by advancing their own distinctive roles as attractive locations for low-end service functions.

Suggested Citation

  • Daniel Schiller & Martijn J Burger & Bas Karreman, 2015. "The Functional and Sectoral Division of Labour between Hong Kong and the Pearl River Delta: From Complementarities in Production to Competition in Producer Services?," Environment and Planning A, , vol. 47(1), pages 188-208, January.
    • Handle: RePEc:sae:envira:v:47:y:2015:i:1:p:188-208
    DOI: 10.1068/a140128p
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    References listed on IDEAS

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    2. Guan, Chenghua & Huang, Jinyuan & Jiang, Ruyue & Xu, Wanting, 2023. "The impact of pilot free trade zone on service industry structure upgrading," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 472-491.
    3. Yifei Wang & Andrea Ascani & Carolina Castaldi, 2023. "Location choices of Chinese greenfield investments across EU regions: the role of industry and country-of-origin agglomerations," Regional Studies, Taylor & Francis Journals, vol. 57(9), pages 1714-1730, September.
    4. Bas Karreman & Martijn J. Burger & Frank G. van Oort, 2017. "Location Choices of Chinese Multinationals in Europe: The Role of Overseas Communities," Economic Geography, Taylor & Francis Journals, vol. 93(2), pages 131-161, March.
    5. Li, Shan & Haralambides, Hercules & Zeng, Qingcheng, 2022. "Economic forces shaping the evolution of integrated port systems - The case of the container port system of China's Pearl River Delta," Research in Transportation Economics, Elsevier, vol. 94(C).

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