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Does Spatial Clustering of Foreign Direct Investment Foster Global Production Networks? The Case of Qingdao, China

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  • Jun Yeup Kim

Abstract

This article examines how spatial clustering of foreign direct investment (FDI) can foster a global production network (GPN). The cluster concept, in general, stressed inter-firm relations between local and regional firms while neglecting global--local linkages in the spatial context. In contrast, GPN focuses on the advantages of international production organization and governance structure but underestimates regional or localized channels of production arrangement. By integrating the conceptual framework of spatial clustering of FDI and GPN, this paper provides empirical evidence of various channels to knowledge and innovation transfer between domestic firms and foreign-invested enterprises. This paper demonstrates that the different types of linkages formation are key determinant factors for establishing cluster through contributing to local economic development.

Suggested Citation

  • Jun Yeup Kim, 2009. "Does Spatial Clustering of Foreign Direct Investment Foster Global Production Networks? The Case of Qingdao, China," European Planning Studies, Taylor & Francis Journals, vol. 19(1), pages 63-76, December.
    • Handle: RePEc:taf:eurpls:v:19:y:2009:i:1:p:63-76
    DOI: 10.1080/09654313.2011.530392
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    References listed on IDEAS

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    1. Dieter Ernst & Linsu Kim, 2001. "Global Productions Networks, Knowledge Diffusion, and Local Capability Formation. A Conceptual Framework," Economics Study Area Working Papers 19, East-West Center, Economics Study Area.
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