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

Hyung Min Kim and Kevin O’Connor

International Planning Studies, 2019, vol. 24, issue 2, 125-139

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.

Date: 2019
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DOI: 10.1080/13563475.2018.1519411

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