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Foreign direct investment flows and urban dynamics in a developing country: a case study of Korean activities in Suzhou, China

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  • Hyung Min Kim
  • Kevin O’Connor

Abstract

This paper provides some new perspectives on the way that Foreign Direct Investment (FDI) influences local urban growth in recipient cities, via a case study of Korean firms in Suzhou, China. An agglomeration of firms, comprising a part of the global production network of Korean firms, provided employment in knowledge intensive manufacturing which has had significant flow-on effects expressed in the co-location of Korean service activities, and a Korean expatriate community. The paper argues that this outcome has been shaped by particular institutional settings which facilitated the agglomerations of inter-related firms and the creation of higher standards of urban liveability. The interaction of these factors means that the effect of FDI on cities can extend beyond the old image of low-wage production labour and low-cost housing, so creating a new planning agenda for cities in developing countries. The Suzhou experience provides a potential blueprint for local policy and planning responses to magnify the impact of FDI projects.

Suggested Citation

  • Hyung Min Kim & Kevin O’Connor, 2019. "Foreign direct investment flows and urban dynamics in a developing country: a case study of Korean activities in Suzhou, China," International Planning Studies, Taylor & Francis Journals, vol. 24(2), pages 125-139, April.
    • Handle: RePEc:taf:cipsxx:v:24:y:2019:i:2:p:125-139
    DOI: 10.1080/13563475.2018.1519411
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    Cited by:

    1. Kim, Hyung Min, 2020. "International Real Estate Investment and Urban Development: An Analysis of Korean Activities in Hanoi, Vietnam," Land Use Policy, Elsevier, vol. 94(C).
    2. O'Connor, Kevin & Fuellhart, Kurt & Kim, Hyung Min, 2020. "Economic influences on air transport in Vietnam 2006–2019," Journal of Transport Geography, Elsevier, vol. 86(C).

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