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This paper examines how latecomer firms manage to achieve industrial upgrading through strategic coupling with global lead firms in automotive production networks. Drawing upon the example of the Guangzhou Automotive Corporation in southern China, this paper theorizes 'cross‐scalar tension' as a key factor to explain why the four cases of strategic coupling between lead firms, the same domestic firm and state ended in different results, from decoupling to a sustainable coupling with local upgrading. This paper contributes to the pertinent literature by demonstrating that cross‐scalar tension is inherent to the nature of global production networks, and unreconciled tension concerning different corporate strategies on technological transfer, localization and product development could lead to decoupling. Importantly, good coordination and matching on corporate strategies between lead and domestic firms could relieve cross‐scalar tensions, thus fostering local industrial upgrading and sustainable strategic coupling. [ABSTRACT FROM AUTHOR]

Despite being a key feature of the globalising world since the 1980s, the patterns and relationships between acquirer and target firms in cross‐border mergers and acquisitions (M&As) have only gained attention in recent years. By examining the data between 1998 and 2018 through multinomial logistic regression models, this paper investigates the goodness of match on technological intensity (the closeness of technological capabilities) between acquirer and target firms and the effects of geographical, cultural and institutional proximity in global cross‐border M&As in manufacturing sectors. Our results suggest that firms are more likely to acquire overseas counterparts with similar levels of technological intensity in manufacturing. Moreover, geographical proximity is significant in the M&As of target firms in low‐tech and medium‐low‐tech sectors, while cultural and institutional proximity matter for cross‐border M&As among medium‐high‐tech and high‐tech firms. High‐tech acquirer firms in advanced economies tend to acquire their high‐tech counterparts located in larger economies, while technological intensity is more important for high‐tech acquirer firms based in non‐advanced economies, as the closeness of technological knowledge with potential target firms allows them to generate potential synergies and overcome cultural gaps and foreignness in distant host countries. [ABSTRACT FROM AUTHOR]

Lead firms play a dominant role in the governance structure of conventional global production network (GPN) analyses but this framework is not fully applicable in sectors where (new) regulations, technologies and subsequent market changes have a disruptive effect on its governance structure. This paper proposes an analytical framework to examine how disruptive effects of industrial megatrends in forms of new regulations and technologies and the subsequent market changes could alter the competitive dynamics between lead firms and their tier-I suppliers. Although lead firms are becoming more specialized and highly efficient in specific product segments, they may not always have inter-firm control over their tier-I suppliers. GPN boundaries become more permeable when there is an external shock, such as new regulations or massive shifts in consumer demand, or the entrance of an entirely new lead firm, possibly due to a technological breakthrough or innovative use of existing technologies in a product. This external shock could have disruptive effects on the GPN, from the exit of current lead firms to the entrance of new tier-I suppliers or lead firms. Consequently, a reconstituted GPN with a newly established boundary is then produced. Applying the analytical framework to the automotive industry, it is argued that selected (and new) systems suppliers with expertise in micro-electronics are not only in a prime position to capture the value generated by the increasingly stringent regulatory environment on safety and environmental standards, but also more resilient than the incumbent automakers to three emerging megatrends: electrification, digitalization and autonomous driving. JEL: F23, L14, L20, L62 [ABSTRACT FROM AUTHOR]

We propose an analytical framework to examine how various dimensions of proximity between home and host countries could account for the trajectories and specificities of cross-border acquisitions of technology assets (CATAs) conducted by acquirer firms in latecomer economies. As Chinese firms have been increasingly using CATAs as a mean to catch up with their counterparts in advanced economies, we referred to their acquisition records to illustrate the applicability of the proposed framework. Based on a compiled dataset of the number of CATA transactions from 2001 to 2018, this paper examines the effects of various dimensions of proximity on the spatio-temporal patterns of Chinese CATAs using negative binomial regression models. Our findings demonstrate that the difference in governance between China and host countries (institutional proximity), the size of overseas Chinese population in host countries (social proximity), and the value of import from host countries (economic proximity) have significant effects on the propensity of Chinese firms to engage in CATAs. Physical distance and cultural gap between China and host countries, however, have no significant impact on CATAs. Further examination of the results reveals that Chinese firms tend to acquire target firms outright in culturally distant host countries to reduce the risk of their overseas acquisition in CATAs. In addition, we also found that there is a dynamic relationship between different dimensions of proximity and CATAs: from the relative importance of economic proximity between 2001 and 2012 to the rising influence of social and institutional proximity between 2013 and 2018 on CATAs. [ABSTRACT FROM AUTHOR]

The Singapore Journal of Tropical Geography has announced the winners of its annual prizes for the best graduate student paper and the best overall paper. The winning graduate student paper, written by Zhijian Sun, explores the techno-politics of China and the Soviet-bloc's socialist tropical architecture in Africa during the 1960s-1980s. The best overall paper, written by Stephen Taylor, Laurent Mavinga, and Moise Bashiga, examines the experience of trauma in the Democratic Republic of Congo, bridging insights from geographies of trauma into global mental health scholarship. The journal also includes an open letter discussing the cancellation of a Palestinian literary event by the Royal Geographical Society. [Extracted from the article]

The conventional approach to examining firm-to-firm governance is unable to disentangle the complexity of strategies and the interplay between different actors with their corresponding rules and routines embedded within an institutional environment where the state plays as a key equity partner in joint ventures (JVs) in transitional economies. This paper proposes an analytical framework of hybrid governance to explain how an alignment of mutual interests between three groups of heterogeneous multi-scalar actors (states, local and foreign firms) facilitates technological upgrading in JVs and the establishment of local production networks in transitional economies. The case of Guangzhou Automobile Group (GAC) demonstrates how the divergent interests of various actors do not necessarily constrain the development of the JV. Under such hybrid governance, whereby the boundaries between public and private property are blurred, GAC's senior managers have been able to navigate and align the multifaceted agendas of various actors: from the profit-maximization demanded by foreign JV partners and industrial development commanded by the central state, to the development of the local capacity and capability for large-scale production and product development and setting up local automotive supply chains required by the local state. Three necessary conditions for technological upgrading in JVs are identified: a 50-50 equity structure, a latecomer in a big market, and the financial imperative of local firm actors. [ABSTRACT FROM AUTHOR]

The post-1997 massive inflow of capital led to a call to resist the Sinicisation of Hong Kong's economy, while pragmatic advocators called for a pro-active leadership role for Hong Kong under the national initiative of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) – the Hongkongnisation of southern China. Instead of focusing on the form of the institution, as in the dominant academic discourses, we argue that the credibility and sustainability of the financial market in Hong Kong is determined by the specific functions that it can perform for the Chinese economy under the constraints of 'One Country, Two Systems' (OCTS). [ABSTRACT FROM AUTHOR]

To contribute to the debate on the importance of state vis-à-vis inter-firm competition in regional development, this paper examines a representative dataset of the relocation of manufacturing firms in Guangdong province of China with multinomial logistic regression models. To improve the competitiveness of manufacturing in the Pearl River Delta, the Guangdong government implemented pro-active policies to encourage the relocation of existing manufacturing firms to their designated industrial parks during the 2000s. Although the initial results appear to support the usefulness of relocation policy, further examination reveals its effectiveness depends on the industrial sector and profiles of the relocated firms. In fact, the relocation of large-scale labor-intensive firms is not driven by local government initiatives. The physical proximity of high-technology parks to airports/ports has a bigger impact on the relocation of small-scale locally-funded high-technology firms into designated parks. In the case of locally-funded firms in polluting sectors, they are expanding rather than relocating to designated industrial parks. The empirical evidence indicates the non-binary nature of the industrial relocation policy. The nuances of relocation policy and its multi-scalar effects on relocated firms rejects any simplistic generalization. [ABSTRACT FROM AUTHOR]

YEUNG G. (2002) WTO accession, the changing competitiveness of foreign-financed firms and regional development in Guangdong of Southern China, Reg. Studies 36, 627-642. This paper investigates the changing competitiveness of foreign-financed manufacturing firms and its implications for regional development in Guangdong province of southern China in the run-up to World Trade Organization (WTO) accession. It is argued that transnational corporations (TNCs) and some competitive, large-scale, locally-funded firms in Guangdong will triumph after WTO accession. The crowding-out process of small and medium sized enterprises (SMEs) in Guangdong will be accelerated in the near future, as they are competing directly with TNCs, and as their competitive advantages are diminishing, due to bureaucratic red rape and the rigorous enforcement of new government policies. Due to close business linkages with local privately-funded firms, the competitiveness and vitality of foreign-financed enterprises will have profound long ter m effects on the economic development of Guangdong, before and after WTO accession. WTO accession Competitiveness Foreign-financed firms Regional development Guangdong, China YEUNG G. (2002) L'adhesion a l'OMC: l'evolution de la competitive des entreprises a capital etranger et le developpement regional en Guangdong dans le sud de la Chine, Reg. Studies 36, 627-642. Cet article cherche a etudier l'evolution de la competivite des entreprises industrielles a capital etranger et les consequences pour le developpement regional en Guangdong dans le sud de la Chine, a la derniere ligne droite avant l'adhesion a l'OMC. On affirme que des societes transnationales et certaines grandes entreprises a fonds de proximite competitive en Guangdong reussiront an lendemain de l'adhesion a l'OMC. En Guangdong, le risque d'eviction des PME va s'accelerer dans un proche avenir, parce qu'elles sont en competition directe avec les societes transnationales et car leurs avantages competitives diminuent a cause de la bureaucratie et de l'application rigoureuse des nouvelles politiques gouvernementales. En raison des liens etroits commerciaux avec des entreprises a fonds de proximite, la competivite et la vitalite des entreprises a capital etranger auront des consequences profondes a long terme sur le developpement economique de Guangdong, avant et apres l'adhesion a l'OMC. Adhesion a l'OMC Competitivite Entreprises a capital etranger Developpement regional Guangdong, Chine YEUNG G. (2002) Beitritt zur Welthandelsorganisation (World Trade Organisation = WTO), die sich wandelnde Wettbewerbsfahigkeit vom Ausland finanzierter Firmen und regionale Entwicklung in Guangdong, Sudchina, Reg. Studies 36, 627-642. Dieser Aufsatz untersucht die sich wandelnde Wettbewerbsfiihigkeit vom Auslnd finanzierter, herstellender Firmen und ihre Implikationen fur die regionale Entwicklung in der sudchinesischen Provinz Guangdong angesichts des vereinbarten Beitritts Chinas zur WTO. Es wird der Standpunkt vertreten, daB sich TNC und einige wettbewerbsfahige, ortlich finanzierte GroBfirmen der herstellenden Industrie in Guangdong nach dem beitritt zur WTO durchsetzen, doch der Verdrangungsprozess der kleinen und mittleren Betriebe in Guangdong bald beschleunigt werden wird, da sie in direktem Wettbewerb mit TNCs stehen, und ihre Wettbewerbsvorteile sich sich infolge von Behordenvor-schriften und rigoroser Einhaltung neuer Regierungspolitik verringern. Dank enger Geschaftsverbindungen mit ortsansassigen , privat finanzierten Firmen wird die Wettbewerbsflihigkeit und Bestandigkeit vom Ausland finanzierter Unternehmen auflange Sicht tiefgehende Auswirkungen auf die wirtschaftliche Entwicklung Guangdongs vor und nach dem Beitritt zur WTO haben. Beitritt zur WTO Wettbewerbsfahigkeit Vom Ausland finanzierte Firmen Regionale Entwicklung Guangdong, China

After the initial public offerings of state-owned commercial banks (SOCBs) in 2005–2010, the transformation of the property structure blurred the conventional boundaries between public and private property in China while the state continued to play an important role in the regulation and operation of this 'hybrid property': the mixed public-private ownership structure adopted for previously wholly SOCBs. It is could be that the perceived lending bias against private enterprises was a rational decision made by SOCBs in China, partly due to the high transaction costs of risk evaluation and the lack of any formal channels to mitigate the credit risks of such loans. The hybrid nature of SOCBs property rights makes them a credible and convenient channel for the state to provide counter-cyclical lending to contain any exogenous (economic) shocks that might occur as well as long-term financial support for development purposes in the transitional economy and thus contribute to socio-economic and political stability in China. Instead of a stumbling block for economic reforms in China, as posited by the conventional institutional analysts, the ambiguous property rights of SOCBs and their practice of offering favourable loan conditions to state-owned enterprises could actually contribute to their profitability and thus the continuity of hybrid property banking systems and their credibility in China. [ABSTRACT FROM AUTHOR]

Annually since 2002, the I Singapore Journal of Tropical Geography i has sponsored a lecture at an international conference. In this first issue of 2021, we are pleased to publish the 2019 I SJTG i lecture on "GIS research to address tensions in geography" (Yuan, 2021a), based on an April 2019 plenary presentation at the American Association of Geographers Annual Meeting held in Washington, DC. As noted in prior Editorials (Bunnell & Lu, 2016; Lu & Bunnell, 2018) the I SJTG i is equally receptive to physical and human geography, as well as to papers that span these fields. [Extracted from the article]

This paper examines how the state can facilitate the establishment of a domestic production network in new energy vehicles (NEVs), from the making of electric vehicle batteries and battery management systems to the manufacturing of NEVs. The case of China illustrates how a non-firm actor was able to create the largest NEV market in the world by implementing proactive policies for market creation and new industrial regulations for cost and range parity. To facilitate the further development of domestic production networks for NEVs, the Chinese government shifted its regulatory parameters and leveraged the market size to drive the incumbent global automakers to rejig their product portfolios and form joint ventures with domestic NEV-makers in China. This provides a prima facie case illustrating how a proactive state can take a dominant role in establishing a domestic production network without coupling with global lead firms in global production networks. [ABSTRACT FROM AUTHOR]

This issue of the I Singapore Journal of Tropical Geography i (SJTG) sees some adjustments to the Editorial team. Tim Bunnell, who has served as co-editor with Xi Xi Lu since January 2012 is stepping down from the role, though will remain a member of our Editorial Board. While much recent scholarly attention has focused on land-based frontier change - with significant focus on land grabs and boom crop production...our paper has examined similar manifestations in coastal frontiers. [Extracted from the article]

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This paper examines why blogshops exist in Singapore and how these unconventional online retailing channels can be extended to bricks and mortar shops. The rise of blogshops is due to a combination of low barriers to entry and the informal institutions that bind the blogshop community for mutual support, and the development of a self-regulatory regime. Blogshops are spatially embedded and supported by the contextualised network of economic actors which facilitate the open exchange of practices and ideas through information diffusion across both virtual and physical space. The overlap between virtual and physical space is further illustrated by businesses extending their virtual space to bricks and mortar shops, which in turn supports their sustainability by widening their market penetration. Therefore, blogshops not only reverse the development path from conventional to online retailer, but also illustrate the importance of physical space for the accumulation and transfer of tacit knowledge. [ABSTRACT FROM AUTHOR]

The trajectories of the German and Chinese photovoltaic industries differ significantly yet are strongly interdependent. Germany has seen a rapid growth in market demand and a strong increase in production, especially in the less developed eastern half of the country. Chinese growth has been export driven. These contrasting trajectories reflect the roles of market creation, investment and credit and the drivers of innovation and competitiveness. Consequent differences in competiveness have generated major trade disputes. [ABSTRACT FROM AUTHOR]

He C. and Yeung G. The locational distribution of foreign banks in China: a disaggregated analysis, Regional Studies. This paper examines the location choices made by foreign banks of different organizational form and size in China. Results from the conditional logit models suggest smaller foreign banks tend to pursue the 'follow-the-customer' strategy, while larger banks are likely to use the 'follow-the-competitor' strategy in China. The agglomeration effect is more important than the first-mover cities as a determinant of the location choices make by foreign banks in China. This finding could be partially explained by the location-bounded institutional variables that are unable to be fully reconciled with the recent deregulation policies. [image omitted] He C. et Yeung G. La distribution geographique des banques etrangeres en Chine: une analyse desagregee, Regional Studies. La presente etude cherche a analyser le choix d'emplacement des banques etrangeres en Chine en fonction de leur structure organisationnelle et de leur taille differentes. Les resultats provenant des modeles logit conditionnels laissent supposer qu'en Chine les plus petites banques etrangeres ont tendance a poursuivre la strategie de 'suivre le client', alors que les plus grandes banques sont plus susceptibles d'adopter la strategie de 'suivre le concurrent'. L'effet d'agglomeration s'avere plus important que ne l'est le phenomene du premier arrive dans les grandes villes comme determinant des choix d'emplacement des banques etrangeres en Chine. Ce resultat pourrait, du moins en partie, s'expliquer par des variables institutionnelles qui sont delimitees geographiquement et qui ne peuvent pas etre conciliees avec les politiques recentes de dereglementation. Banques etrangeres Choix d'emplacement Modele logit conditionnel Chine He C. und Yeung G. Verteilung der Standorte auslandischer Banken in China: eine disaggregierte Analyse, Regional Studies. In diesem Beitrag werden die Standortentscheidungen auslandischer Banken verschiedener Organisationsformen und Grossen in China untersucht. Aus den Ergebnissen konditionaler Logit-Modelle geht hervor, dass kleinere auslandische Banken in China meist eine Strategie des 'Dem-Kunden-Folgens' wahlen, wahrend grossere Banken meist auf eine Strategie des 'Der-Konkurrenz-Folgens' setzen. Der Agglomerationseffekt spielt als Determinant fur die Standortentscheidungen auslandischer Banken in China eine grossere Rolle als die Pionierstadte. Dieses Ergebnis lasst sich teilweise durch die standortgebundenen institutionellen Variablen erklaren, die sich nicht vollstandig mit den aktuellen Deregulationspolitiken in Einklang bringen lassen. Auslandische Banken Standortentscheidungen Konditionales Logit-Modell China He C. y Yeung G. La distribucion de ubicacion de los bancos extranjeros en China: un analisis desglosado, Regional Studies. En este articulo analizamos las decisiones de ubicacion tomadas por bancos extranjeros de diferentes formas de organizacion y tamanos en China. Los resultados de los modelos logit condicionales indican que en China los bancos extranjeros mas pequenos tienden a optar por la estrategia de 'seguir al cliente' mientras que los bancos mas grandes tienden a usar la estrategia de 'seguir a la competencia'. El efecto de aglomeracion desempena un papel mas importante que el de las ciudades pioneras para determinar las decisiones de ubicacion que realizan los bancos extranjeros en China. Estos resultados podrian explicarse en parte por las variables institucionales vinculadas a la ubicacion que no pueden reconciliarse totalmente con las recientes politicas de desregulacion. Bancos extranjeros Decisiones de ubicacion Modelo logit condicional China [ABSTRACT FROM AUTHOR]

The financial crisis indicates the underlying bankruptcy of the last of a series of attempts to restore sustained growth in advanced countries since the end of the post-war Golden Age: Italian flexible specialization, Japanese and Rhine-style lean production, the new economy and Anglo-American financialization. Over the same period a number of emerging economies and in particular China have sustained high rates of growth. In the years to come, developed country growth is likely to remain slow because no alternative high-growth model is on the horizon. A country such as China conversely has the potential to continue to grow relatively fast provided it can profoundly alter its model of development in ways that address global and national imbalances. If it and other large emerging economies do achieve further sustained growth, this will in effect reverse the gap created by industrial revolution, colonialism and imperialism. The aim of this paper is to explain the reasons for and the possibilities of such global convergence, paying particular attention to the reasons for and implications of the financial crisis and the extent to which China’s fiscal stimulus contributes to a new model of Chinese development. [ABSTRACT FROM AUTHOR]

Based on interviews conducted in four major Chinese cities, this paper examines the determinants of lending by state-owned commercial banks (SOCBs) to manufacturing firms in China. The conventional relationship banking and transaction lending theories helps explain at least part of the lender-borrower relationship in China. The perceived lending bias against non-state-owned enterprises could actually be reconciled as rational decision-making by SOCBs, partly due to the higher risk involved and/or high transaction costs in the risk evaluation of such lending. The existence of unofficial lending criteria at SOCBs nonetheless provides golden rent-seeking opportunities for unscrupulous bankers to exploit the regulatory loopholes for financial gain. [ABSTRACT FROM AUTHOR]