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

Kai Li, Yunzhi Zhang, Wensi Wang, Yonglei Jiang and Hexin Zhang

Bulletin of Economic Research, 2022, vol. 74, issue 2, 405-420

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.

Date: 2022
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