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Spatial location of new foreign firms in Shanghai under the transformation of urban development

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  • Kai Li
  • Yunzhi Zhang
  • Wensi Wang
  • Yonglei Jiang
  • Hexin Zhang

Abstract

With the continuous development of Shanghai, urban construction has changed the geographical location choices of foreign enterprises. This paper uses spatial econometric methods to analyze the preferences of foreign companies when choosing addresses by considering location factors and aggregation factors. The results show that Shanghai's newly introduced foreign‐funded enterprises are mainly concentrated in six industries, including wholesale and retail, manufacturing, leasing, and commercial services, and the geographic spatial distribution of new foreign enterprises in Shanghai shows “central concentration and peripheral dispersion.” There is an obvious inverted U‐shaped pattern in this phenomenon. Among the location factors, distance from the airport is an important factor that affects the location choice of enterprises. In addition, agglomeration factors have different effects on the location models of new enterprises in six industries.

Suggested Citation

  • Kai Li & Yunzhi Zhang & Wensi Wang & Yonglei Jiang & Hexin Zhang, 2022. "Spatial location of new foreign firms in Shanghai under the transformation of urban development," Bulletin of Economic Research, Wiley Blackwell, vol. 74(2), pages 405-420, April.
  • Handle: RePEc:bla:buecrs:v:74:y:2022:i:2:p:405-420
    DOI: 10.1111/boer.12300
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    1. Hao-Chen Huang & Hsin-Yin Chang & Ting-Hsiu Liao, 2023. "Analyzing the Impact of the Labor Market on Company Location Selection Using Spatial Econometric Models," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(6), pages 1-9.

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