Global-local initiatives in FDI: The experience of Shenzhen, China

Abstract

In 2002, China surpassed the USA to become the world's largest foreign investment destination. Many Chinese cities, especially those along the coast, have become hot spots for Foreign Direct Investment (FDI). The urban development of these Chinese cities, as in most market societies, has increasingly depended upon their global connections. However, it is unclear to what degree the governments of these cities are able to influence the decisions of foreign investors. This paper uses Shenzhen city as a case study to examine how multinationals' spatial and sectoral patterns have been changed over time and to what degree the local government has been able to influence multinationals' locational a..