Exploring the significance of domestic investment for foreign direct investment in China: a city-network approach

This paper uses a network approach and a negative binomial regression model (NBRM) to shed light on the association between Domestic Investment (DI) and Foreign Direct Investment (FDI) in interlinking Chinese cities in a space of flows. The empirical analysis is based on 2743 FDI and 9315 DI projects covering 77 Chinese cities. We address the question of what is the association between DI network measures and city attractiveness for FDI, and does the geographic distance of DI matter? While the physical distance of DI activity is found to have a negative association with FDI, city functional proximity and structural position in the DI network are found to have a positive association. We conclude that strategic policies to stimulate cross-territorial economic ties between Chinese cities should be advantageous in attracting inward foreign investment

NETSCAPE - Europe and the Evolving World City Network

This paper focuses on the interdependencies between firms and spatial networks (nodes and linkages) at different European spatial scales. The paper is structured into two parts: (1) Conceptualization; (2) Empirical Analysis. Part (1) consists of three chapters conceptualizing various scales of city-firm networks. The first concerns the macro scale, discussing the development of specific networks within the globalization process. The second analyses the mezzo level of European networks and their national to supranational transformation. On the micro level Rotterdam's internal and external network is conceptualized. Part (2) empirically reveals the European city-firm network at mezzo and micro scales, based on datasets including the top 100 EU multinationals, their affilates/subsidiaries and the city locations of all these firms. Chapter one analyses the mezzo scale, showing various hierarchies of city-firm interdependencies, for the sectors of manufacturing, trade, information, public services and basic materials. The second chapter analyses the relative position of Rotterdam within this interscalar network, by specifically investigating its internal and external city-firm networks. From this Rotterdam's existing strengths and weakenesses, and possible future implications are determined.

The position of the Noordvleugel in worldwide economic networks

Over the past decades, there is increasing interest in the economic networks between cities, in which it is argued that the rise of the network economy is the result of advances in ongoing globalization, transport and communication technology, common markets, the individualization of production and the growth of multinational firms. It is said that these aspects significantly impact on the spatio-economic structure of cities and regions (e.g. Batten, 1995, Anas et al., 1998), in which the monocentric city is transforming into a polycentric urban network. However, a paradox in this process is the focus of academics and policymakers on sub-national regions as the essential unit of economic activity. In general, most studies and policies fail to conceptualize regional development in an era of globalization (Dicken and Malmberg 2001). Instead, a combined strategy of global production networks and regional assets should be pursued, in which activities are understood across different geographical scales (Coe et al., 2004, Dicken et al., 2001). Today, only a limited number of world city network studies exist (due to scarcity of relational data), e.g. international banking (Meyer 1986), producer service firms (Taylor, 2004), MNC governance (Alderson and Beckfield, 2004), and corporate directorates (Carroll, 2007)

Linking scales and urban network development

Comparative studies of urbanisation can be characterized by their emphasis on the quantitative and visual aspects of urban growth, which is amongst other things reflected in the analysis of spatial patterns and rates of urban population growth. The visual aspects relate both to the spatial realisation of the demand for urban land use and its functional variation. This emphasis can be understood from the perspective of the ongoing process of urban industrial growth in the industrialised countries during the 19th and most of the 20th century. Most of the concept and models we use have been developed during this period of urban transition and relate to this experience. However, in the last quarter of the 20th century this process came to an end as the urbanisation process in its present form was completed. This leads to the following questions. First, to what extent are the concepts and models derived throughout this period still valid? Second, if this is not the case, to what extent do they need adjustment and third, what kind of new approaches are required? In this paper the focus will be cities as part of an urban system and will deal with two issues, viz. the relation between spatial scales, i.e. vertical linkages and the relation between cities, especially focussed on their horizontal linkages or network characteristics. These two issues will be discussed against the background of the completion of three long-term developments: (1) the completed first demographic transition, (2) the completed process of industrialisation and (3) the completion of three infrastructural revolutions. This analysis will indicate the direction in which the environment has changed, the consequences of this change for the conceptualisation of the process of urbanisation and for the characteristics of the process it self. The consequences of these changes will be discussed using empirical examples from the Netherlands and other parts of Europe both for models of internal urban structure and for the city system at large. The classical unity between territory, economic and social functions is broken up and has lead to a decoupling of functions both in a spatial and in a functional sense. The latter has resulted in a process of spatial rebundling of activities. It will be argued that new rationalities are needed to understand the contemporary realisation of the spatial outcome of the demand for space use. In addition to this, it has also been argued that new and different types of uncertainties emerge. The latter are related to the increased importance of micro processes in the demand for space use. This in turn has consequences for spatial policy, as it will lead to considerable mismatches between national planning goals and actual realisations. It is suggested that a process approach is needed to deal with these uncertainties

NETSCAPE: Cities and Global Corporate Networks

Today the existence of the ‘network society’ is often asserted. However, there is a lack of empirical understanding of what these networks actually are, especially concerning networks between cities worldwide. Therefore, this study contributes to economic geography because it is empirically based on actual data concerning global multinational networks. Based on this, the network characteristics of temporality, structure, scale, competition and performance are explored using network analysis techniques. In the temporal study the historical process of network formation is discussed. In the study on structure the contemporary worldwide corporate network is empirically exposed. In this, the hierarchies, interdependencies and distribution of the network is revealed. For instance, it is demonstrated that the majority of corporate activity takes place ‘between’ cities and not ‘within’ their municipal boundaries. The study on corporate scale shows how differences in firm types (global, European and Dutch), will reveal variations in city hierarchies and interdependencies. In the competition study a new measure has been introduced to assess competition based on the economic ties between cities. The study on network performance shows that although the reach of corporate activity between nations is global, the scope of this activity remains particularly constrained between nations of the developed world. Hence, contrary to popular belief, the corporate world is not flat but highly polarized. Based on this, it is shown that network hegemony is strongly associated with the global competitivity levels of nations. This study demonstrates the utility of network analysis to understand cities within an increasingly global world - in which the methods, techniques and results can be of interest to scientists, policymakers, planners and developers alike

Environmental regulations and industrial competitiveness: evidence from China

Economic activities are closely related to real-world environmental issues. Currently, more attention is paid to the association between environmental regulations and industrial competitiveness (IC) because of pressures on economic development and environmental protection. In this study, we identify and explain the association between environmental regulations and IC in China. As the largest developing country in the world, China has the unavoidable responsibility of protecting the environment and promoting global economic development. We analyse the mechanisms behind environmental regulations and industrial competiveness at the provincial level and conclude that the impact of environmental regulations upon IC is not a simple linear one, but a U-shaped relationship. It is argued that the crucial intervention to activate the U-shaped relationship, or Porter’s Hypothesis, is innovation, which can be triggered by stringent regulations and well-designed policies

Revealed Competition for Greenfield Investments between European Regions

In the modern economy, cities are assumed to be in fierce competition over attracting foreign investments in leading sectors of the world economy. Despite the rich theoretical discourse on these 'wars', it remains unclear which territories are competing with each other over which types of investments Combining insights from international economics, international business, and urban systems literature, we develop an indicator to measure revealed competition between territories for investments based on the overlap of investment portfolios of regions. Taking competition for greenfield investments between European regions as a test subject, we identify competitive market segments, derive the competitive threat a region faces from other regions, the competitive threat regions pose to other regions, and the most important market segments in which regions compete. We show that European regions with similar locational endowments pose a fiercer competitive thre at to one another. In addition, regions that are sufficiently large and distinctive, face the smallest average competitive threat from all other regions