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Hong Kong Pearl River Delta
FDI and Industrial Restructuring
Findings from previous study
“Globalization and the dominance of large cities in contemporary China”, (2003), Cities,
Vol. 20, No. 4, pp. 265-278.
• The demographic and economic development of the large cities are self-
driven, and not because of the growth of small or medium sized cities into
large cities.
• The globalization process, especially the effects from the globalization of
business locations and the globalization of production, strengthens the
growth of large cities in China.
• The globalization process also brought about the population, industrial and
capital agglomeration in large cities, resulting from the ability of large cities
to accumulate people, capital and investments under the effects of
“globalization”. Such agglomeration is caused by “urbanization economies”,
“competitive advantage”, and “increasing returns”.
• Both “urbanization economies” and “increasing returns” strengthen the
“competitive advantage” of large cities, eventually, the effects from these
factors shall resulted in the agglomeration of people, firms and capital.
Hypotheses
• To examine the new industrial space of Hong Kong manufacturing firms
and its relationship with Hong Kong. It is argued that a new industrial
space of Hong Kong manufacturing firms is emerging relying on this new
wave of relocation and in contrast to the last round of relocation of Hong
Kong manufacturing firms.
• The new round of relocation is more complicated, which not only includes
the diverse relocation strategies adopted by Hong Kong manufacturing
firms according to their necessities but also in association with the policies
of Guangdong provincial government and local governments in the PRD.
• The traditional PRD mod
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