IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Small- and medium-sized enterprises in cross-border networks: Empirical evidence from the Pearl River Delta

  • Schmidt, Klaus-Dieter
Registered author(s):

    The Pearl River Delta is one of the most successful cases of economic re-integration after a long period of separation. Hong Kong's traditional policy of non-interventionism and China's open-door policy have induced a rapid increase in cross-border trade, outward processing and outward investment. The paper focuses on the different modes of integration as well as on the driving forces behind. It argues that small- and medium- sized enterprises have played the pivotal role in the Delta's economic development. Their cross-border operations have been mainly facilitated through two channels: through subcontracting networks among manufacturers and through links with trading houses which are frequently small in size. The paper underlines three main keys to the Delta's economic success: a non-interventionist policy favourable for growth, a pronounced outward orientation in business which consequently exploits complementaries in comparative advantages and, last but not least, the so-called Chinese factor - the special attitudes adopted by local entrepreneurs, their adaptability and flexibility, their work ethics and their common cultural heritage. In some respects, the Pearl River Delta can serve as a model for developing border regions in Central Europe along the former Iron Curtain. Despite their great potential, these regions are integrating only slowly. The paper suggests that border regions after a long period of political and economic division are predestined to become an economic power-house.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 808.

    in new window

    Date of creation: 1997
    Date of revision:
    Handle: RePEc:kie:kieliw:808
    Contact details of provider: Postal:
    Kiellinie 66, D-24105 Kiel

    Phone: +49 431 8814-1
    Fax: +49 431 85853
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:kie:kieliw:808. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dieter Stribny)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.