In the existing literature on foreign direct investment, it is often assumed that multinational c... more In the existing literature on foreign direct investment, it is often assumed that multinational corporations and their direct investments reduce institutional differences among economies. Building upon this assumption, those influenced by management studies and mainstream economics see multinational corporations as an agent that upgrades local business conventions to global standards. Geographers do not usually accept this convergence theory and claim differences among host economies prevents convergence in business practices. The difference between these groups of scholars is that the non-convergence camp acknowledges the resilience of local business practices while the convergence camp does not. The papers comprising this special issue question this shared assumption of foreign direct investment as a cause of convergence. As outlined in this introductory paper, and explored in detail in the following papers, we pay attention to the simple fact that the foreign direct investment is from a company or individual whose business practices are inherently influenced by their experiences of business in the nation or region of origin, and these experiences indelibly influence, to varying degrees, their local operations in investment destination. Once we accept such an obvious fact, recent debates on variety of capitalism and related literatures on the developmental state, welfare regime and other concepts all become relevant to understanding of the local operation of foreign-owned businesses.
Over the last three decades, economic geographers and social scientists from various theoretical ... more Over the last three decades, economic geographers and social scientists from various theoretical veins have suggested a fundamental transformation of capitalism, from Fordist mass production and Taylorist divisions of labor to post-Fordism and flexible specialization. More recent debates about the creative industries and creative cities (cf. Scott 2006)-and not least Richard Florida's (2002; 2014) concept of the 'creative class' can be seen as an extension of investigations into late capitalism's evolution to what Scott (2012) among others called cognitive-cultural capitalism. In these transformationist views, changes in the labor process and the overall composition of the workforce are one of the main elements of analysis, along with changes in intra-firm and inter-firm industrial organization and the fragmentation of production and markets. Some of this literature, most notably Florida's work, assumes that cultural and hightech industries are qualitatively different from more labor-intensive manufacturing and service industries in that the skills in the former are much less likely to be standardized and an increasing proportion of the workforce is required to carry out multiple, creative and cognitive tasks. There are, of course, critical responses to the rise of the creative class (cf. Peck 2005) that have emphasized the negative impacts of, for instance, gentrification in creative cities through the influx of a highly paid workforce comprising of 'symbolic analysts' (Scott 2012), relying on a 'service underclass' (ibid) while at the same time displacing it and other parts of
The Oxford Handbook of Industrial Hubs and Economic Development, 2020
This chapter argues that two variables should be considered in deciding the location of an indust... more This chapter argues that two variables should be considered in deciding the location of an industrial hub: 1) whether the industries in the hub require heavy infrastructure; and 2) whether workers and their families need a full urban environment. The second is as important as the first because a hub without a living environment that fits the needs of the workers and their families will have trouble attracting and retaining workers. Focusing on these two variables, we propose a two-by-two matrix with four ideal types of industrial hubs. They are: 1) the industrial annex of metropolis; 2) the industrial town; 3) the metropolitan-immersed industrial hub; and 4) the new industrial city. For each of these types, a South Korean example is provided.
Concepts like ‘creative city’, ‘world city’ and ‘eco city’ arrive with loud celebration, but fade... more Concepts like ‘creative city’, ‘world city’ and ‘eco city’ arrive with loud celebration, but fade in just a few years. In recent years, ‘smart city’ has been a buzzword. As each fad emerges, urbanists debate its meaning and implications. However, why so many urban concepts circulate at all is rarely focused on. This study attempts to answer this question based on the Marxian view of the built environment as a fixed capital. We focus on the differences between the built environment and other types of fixed capital, and show how these differences render capital circulation in the built environment sector more fragile. We claim that such fragility cannot be fixed within the circuit of capital, so external intervention is necessary and deployment of catchy urban concepts is a resorted method of such intervention.
Developmental state literature almost completely neglects the fact that one of the unique feature... more Developmental state literature almost completely neglects the fact that one of the unique features of the developmental state is its capacity to reorganize its territory, and the literature on the Chinese developmental state repeats the same oversight. Against this backdrop, this study attempts to retheorize China’s spatial planning from a developmental state perspective. In light of the theoretical discussion in this study, we argue that the developmentalist spatial planning has five main characteristics of the developmentalist spatial planning: (1) The state sees its territory as a means of production, not as a living environment. (2) Industrial location policies were market-conforming. (3) The spatial planning was controlled or strongly influenced by the elite economic agency that formulates industrial policies and guides the market. (4) The bureaucracy is more or less insulated from local growth coalitions. (5) Spatial planning creates rather than responds to economic changes. T...
About the Asian Development Bank ADB is committed to achieving a prosperous, inclusive, resilient... more About the Asian Development Bank ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members-49 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. ADB Briefs are based on papers or notes prepared by ADB staff and their resource persons. The series is designed to provide concise, nontechnical accounts of policy issues of topical interest, with a view to facilitating informed debate. The Department of Communications administers the series. The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of ADB or its Board of Governors or the governments they represent. ADB encourages printing or copying information
The geographical political economy (GPE) proposed by Andy Pike (2020) and his colleagues offers r... more The geographical political economy (GPE) proposed by Andy Pike (2020) and his colleagues offers room for better understanding of the interaction between politics and industrialization of a region. In this commentary, we argue that the political dimension of GPE should be further emphasized and geopolitics should be taken more seriously. Incorporation of geopolitics can improve GPE in two ways: First, it will help GPE capture variegated pathways and institutions of regional economies, which in turn can help reduce the Anglo-American bias in GPE and economic geography. Secondly, attention to geopolitics is a way to achieve a multi-scalar understanding of the regional economy. With examples from East Asia, where the effects of geopolitics is highly visible, we claim there are at least three ways how geopolitics influence regional industrialization. First, geopolitics change the global economy which can subsequently condition regional industrialization; second, a superpower's geopolitical strategy influence its international economic policy which can afterwards condition regional industrialization in others' territories; lastly, a national state sets a geopolitical strategy which then determines regional policy.
Annals of the American Association of Geographers, 2019
The word gangnam literally means "south of a river." Conventionally, however, Gangnam usually ref... more The word gangnam literally means "south of a river." Conventionally, however, Gangnam usually refers to the three districts (gu in Korean administrative terms) within Seoul's Gangnam (i.e., Gangnam-gu, Seocho-gu, and Songpa-gu). We use the conventional definition in this paper and treat it as a proper noun.
Despite market-mediated technology becoming a key source for a region's innovation and growth, th... more Despite market-mediated technology becoming a key source for a region's innovation and growth, the literature on spill-over across geographical space has not discerned between compensated technology transfer from pure knowledge spill-over. Drawing on the conflicting motivations between the technology supplier (licensor) and the demander (licensee) in the licensing market transaction, this critical review highlights the contrary preference for geographical proximity, separating market-mediated technology spill-overs from knowledge spill-overs. This paper argues that licensing firms might shun co-located licensees to avoid potential dissipation risk, while the purchaser prefers vicinity partners to avert opportunistic behaviour. Micro-level mechanisms of transferring compensated technology are of particular significance in enhancing the efficiency of the regional innovation system, providing an insight into why some geographical clusters are not efficient.
The structure and evolution of the trade networks of the Belt and Road countries: Identification ... more The structure and evolution of the trade networks of the Belt and Road countries: Identification and implication Introduction The Belt and Road Initiative ('BRI', hereafter) that was proposed by Chinese President Xi Jinping in 2013 found its way into the new revised Charter of the Chinese Communist Party in October 2017. This gives BRI a constitutional status as part of "Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era" (Xinhua, 2017a) i. The BRI refers to the land-based Silk Road Economic Belt (One Belt) and the oceangoing 21st-century Maritime Silk Road (One Road) that were announced in September and October 2013 respectively. Since then, particularly after March 2015 when the "Vision and Actions on Jointly Building the Silk Road Economic Belt and the 21st Century Maritime Silk Road (NDRC, MFA and MC, 2015, '("Vision and Actions" hereafter) ii were announced, BRI has received widespread international attention (Toops, 2016; Bennett, 2016; Vinokurov and Tsukarev , 2017) iii. Not only journalists but also academics are quick to partake in the debate. Academic journals published special issues, as well as individual papers on BRI, covering it from various perspectives. (E.g.,
This paper asks whether the technological development of a nation reduces interregional hierarchy... more This paper asks whether the technological development of a nation reduces interregional hierarchy in knowledge flow. We examine two scenarios that are the alternative to each other. The first is what we call, the globalization of regional innovation system/ weakening of interregional hierarchy scenario: As many regions develop their niches in the global economy, the national "anchor" regions loses its relative importance as the importer and distributor of new knowledge, rendering the domestic interregional hierarchy less significant as a result. The second scenario is the globalization of national innovation system/ persistence of interregional hierarchy. The nation's traditional anchor region becomes even more active in importing technology and distributing it to other regions of the country. To test which scenario is closer to reality, we employ social network metrics to analyse interregional technology diffusion networks using Chinese patent licensing data for the 1998-2013 period. Our findings support the second scenario, showing that the influence of the traditional anchor region persists in the hierarchical network structure as new cities enter the network. We found five anchor regions: the three usual suspects-Beijing, Shanghai, and Shenzhen-plus two that were slightly unexpected-Dongguan and Suzhou.
Since 1993, Indonesia has experienced both upward and downward restructuring of state power throu... more Since 1993, Indonesia has experienced both upward and downward restructuring of state power through the ASEAN Free Trade Agreement (AFTA) and fiscal decentralization, respectively. In this study, we investigate the impact of state restructuring on regional disparity. Indonesia is an interesting case because it is one of the few economies in which the upward and downward restructuring of state power occurred almost simultaneously. Based on a panel data analysis of micro-level firm data for the period 1993-2005, we find evidence of neoclassical convergence. Furthermore, decentralization was found to slow this convergence, while the AFTA had no statistically significant impact during the study period.
We fully agree with Hassink, Gong and Marques (this issue) that Anglophone economic geography con... more We fully agree with Hassink, Gong and Marques (this issue) that Anglophone economic geography confers dominant power. We also agree that this hegemony narrows the way in which we see non-Anglophone part of the world. We doubt, however, that a search for different traditions within non-Anglophone academia will actually yield something that could be used to form a counter-hegemon. Instead, we argue that it is location that matters, not language. The counter hegemon should be constructed, not through a plea for diversity in Anglo-American academia, but through the formation of academic communities in other international regions. We will illustrate this with some examples from South Korea and East Asia, areas with which the three authors of this commentary are especially familiar. As Hassink, Gong and Marques argue, different places have different research cultures. As in China (the region they discuss), in South Korea the link between economic geography and regional policy has been relatively tight. There are many Korean "Departments of Regional Development," whose faculty members include geographers. Also, the planners in those departments often borrow theories from economic geography. Those who teach in these departments have many opportunities to get involved in policy-making at various levels. We also know many geographers who do academic consultancy work in real estate, tourism, planning and other areas. This is certainly a very different culture from that of Anglophone academia. However, we doubt these cultural differences have led to the development of theories or approaches that distinguish South Korean economic geography from the Anglophone kind. One might think that, since academic consultancy enables scholars to test out theories within real-world settings, it would therefore help them modify and improve upon theories that South Korean academics have adopted from Anglophone academia. However, this simple model of knowledge utilisation does not hold in most cases. A policy is not a direct application of academic theory, but a combination of various elements, among which academic theory is only one (
For the understanding of the accumulation strategy behind a mega urban development project, the d... more For the understanding of the accumulation strategy behind a mega urban development project, the distinction should be made between the two different strategies of capital accumulation, which we term (1) rent-extraction strategy (RES) and (2) socioeconomic transformation of space strategy (STSS). This distinction is important because each is preferred by actors at different scales, thereby creating conflicts between them. Local actors are likely to prefer RES because its benefits mainly fall in the local area. National actors often prefer STSS because it symbolises state-level commitment to a business-friendly economic environment. Negotiation between these two strategies constitutes a major part of the formation of accumulation strategy. We test this theoretical prediction against the case of Songdo International City in South Korea. We find that the history of the project is consistent with our theoretical prediction.
In the existing literature on foreign direct investment, it is often assumed that multinational c... more In the existing literature on foreign direct investment, it is often assumed that multinational corporations and their direct investments reduce institutional differences among economies. Building upon this assumption, those influenced by management studies and mainstream economics see multinational corporations as an agent that upgrades local business conventions to global standards. Geographers do not usually accept this convergence theory and claim differences among host economies prevents convergence in business practices. The difference between these groups of scholars is that the non-convergence camp acknowledges the resilience of local business practices while the convergence camp does not. The papers comprising this special issue question this shared assumption of foreign direct investment as a cause of convergence. As outlined in this introductory paper, and explored in detail in the following papers, we pay attention to the simple fact that the foreign direct investment is from a company or individual whose business practices are inherently influenced by their experiences of business in the nation or region of origin, and these experiences indelibly influence, to varying degrees, their local operations in investment destination. Once we accept such an obvious fact, recent debates on variety of capitalism and related literatures on the developmental state, welfare regime and other concepts all become relevant to understanding of the local operation of foreign-owned businesses.
Over the last three decades, economic geographers and social scientists from various theoretical ... more Over the last three decades, economic geographers and social scientists from various theoretical veins have suggested a fundamental transformation of capitalism, from Fordist mass production and Taylorist divisions of labor to post-Fordism and flexible specialization. More recent debates about the creative industries and creative cities (cf. Scott 2006)-and not least Richard Florida's (2002; 2014) concept of the 'creative class' can be seen as an extension of investigations into late capitalism's evolution to what Scott (2012) among others called cognitive-cultural capitalism. In these transformationist views, changes in the labor process and the overall composition of the workforce are one of the main elements of analysis, along with changes in intra-firm and inter-firm industrial organization and the fragmentation of production and markets. Some of this literature, most notably Florida's work, assumes that cultural and hightech industries are qualitatively different from more labor-intensive manufacturing and service industries in that the skills in the former are much less likely to be standardized and an increasing proportion of the workforce is required to carry out multiple, creative and cognitive tasks. There are, of course, critical responses to the rise of the creative class (cf. Peck 2005) that have emphasized the negative impacts of, for instance, gentrification in creative cities through the influx of a highly paid workforce comprising of 'symbolic analysts' (Scott 2012), relying on a 'service underclass' (ibid) while at the same time displacing it and other parts of
The Oxford Handbook of Industrial Hubs and Economic Development, 2020
This chapter argues that two variables should be considered in deciding the location of an indust... more This chapter argues that two variables should be considered in deciding the location of an industrial hub: 1) whether the industries in the hub require heavy infrastructure; and 2) whether workers and their families need a full urban environment. The second is as important as the first because a hub without a living environment that fits the needs of the workers and their families will have trouble attracting and retaining workers. Focusing on these two variables, we propose a two-by-two matrix with four ideal types of industrial hubs. They are: 1) the industrial annex of metropolis; 2) the industrial town; 3) the metropolitan-immersed industrial hub; and 4) the new industrial city. For each of these types, a South Korean example is provided.
Concepts like ‘creative city’, ‘world city’ and ‘eco city’ arrive with loud celebration, but fade... more Concepts like ‘creative city’, ‘world city’ and ‘eco city’ arrive with loud celebration, but fade in just a few years. In recent years, ‘smart city’ has been a buzzword. As each fad emerges, urbanists debate its meaning and implications. However, why so many urban concepts circulate at all is rarely focused on. This study attempts to answer this question based on the Marxian view of the built environment as a fixed capital. We focus on the differences between the built environment and other types of fixed capital, and show how these differences render capital circulation in the built environment sector more fragile. We claim that such fragility cannot be fixed within the circuit of capital, so external intervention is necessary and deployment of catchy urban concepts is a resorted method of such intervention.
Developmental state literature almost completely neglects the fact that one of the unique feature... more Developmental state literature almost completely neglects the fact that one of the unique features of the developmental state is its capacity to reorganize its territory, and the literature on the Chinese developmental state repeats the same oversight. Against this backdrop, this study attempts to retheorize China’s spatial planning from a developmental state perspective. In light of the theoretical discussion in this study, we argue that the developmentalist spatial planning has five main characteristics of the developmentalist spatial planning: (1) The state sees its territory as a means of production, not as a living environment. (2) Industrial location policies were market-conforming. (3) The spatial planning was controlled or strongly influenced by the elite economic agency that formulates industrial policies and guides the market. (4) The bureaucracy is more or less insulated from local growth coalitions. (5) Spatial planning creates rather than responds to economic changes. T...
About the Asian Development Bank ADB is committed to achieving a prosperous, inclusive, resilient... more About the Asian Development Bank ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members-49 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. ADB Briefs are based on papers or notes prepared by ADB staff and their resource persons. The series is designed to provide concise, nontechnical accounts of policy issues of topical interest, with a view to facilitating informed debate. The Department of Communications administers the series. The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of ADB or its Board of Governors or the governments they represent. ADB encourages printing or copying information
The geographical political economy (GPE) proposed by Andy Pike (2020) and his colleagues offers r... more The geographical political economy (GPE) proposed by Andy Pike (2020) and his colleagues offers room for better understanding of the interaction between politics and industrialization of a region. In this commentary, we argue that the political dimension of GPE should be further emphasized and geopolitics should be taken more seriously. Incorporation of geopolitics can improve GPE in two ways: First, it will help GPE capture variegated pathways and institutions of regional economies, which in turn can help reduce the Anglo-American bias in GPE and economic geography. Secondly, attention to geopolitics is a way to achieve a multi-scalar understanding of the regional economy. With examples from East Asia, where the effects of geopolitics is highly visible, we claim there are at least three ways how geopolitics influence regional industrialization. First, geopolitics change the global economy which can subsequently condition regional industrialization; second, a superpower's geopolitical strategy influence its international economic policy which can afterwards condition regional industrialization in others' territories; lastly, a national state sets a geopolitical strategy which then determines regional policy.
Annals of the American Association of Geographers, 2019
The word gangnam literally means "south of a river." Conventionally, however, Gangnam usually ref... more The word gangnam literally means "south of a river." Conventionally, however, Gangnam usually refers to the three districts (gu in Korean administrative terms) within Seoul's Gangnam (i.e., Gangnam-gu, Seocho-gu, and Songpa-gu). We use the conventional definition in this paper and treat it as a proper noun.
Despite market-mediated technology becoming a key source for a region's innovation and growth, th... more Despite market-mediated technology becoming a key source for a region's innovation and growth, the literature on spill-over across geographical space has not discerned between compensated technology transfer from pure knowledge spill-over. Drawing on the conflicting motivations between the technology supplier (licensor) and the demander (licensee) in the licensing market transaction, this critical review highlights the contrary preference for geographical proximity, separating market-mediated technology spill-overs from knowledge spill-overs. This paper argues that licensing firms might shun co-located licensees to avoid potential dissipation risk, while the purchaser prefers vicinity partners to avert opportunistic behaviour. Micro-level mechanisms of transferring compensated technology are of particular significance in enhancing the efficiency of the regional innovation system, providing an insight into why some geographical clusters are not efficient.
The structure and evolution of the trade networks of the Belt and Road countries: Identification ... more The structure and evolution of the trade networks of the Belt and Road countries: Identification and implication Introduction The Belt and Road Initiative ('BRI', hereafter) that was proposed by Chinese President Xi Jinping in 2013 found its way into the new revised Charter of the Chinese Communist Party in October 2017. This gives BRI a constitutional status as part of "Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era" (Xinhua, 2017a) i. The BRI refers to the land-based Silk Road Economic Belt (One Belt) and the oceangoing 21st-century Maritime Silk Road (One Road) that were announced in September and October 2013 respectively. Since then, particularly after March 2015 when the "Vision and Actions on Jointly Building the Silk Road Economic Belt and the 21st Century Maritime Silk Road (NDRC, MFA and MC, 2015, '("Vision and Actions" hereafter) ii were announced, BRI has received widespread international attention (Toops, 2016; Bennett, 2016; Vinokurov and Tsukarev , 2017) iii. Not only journalists but also academics are quick to partake in the debate. Academic journals published special issues, as well as individual papers on BRI, covering it from various perspectives. (E.g.,
This paper asks whether the technological development of a nation reduces interregional hierarchy... more This paper asks whether the technological development of a nation reduces interregional hierarchy in knowledge flow. We examine two scenarios that are the alternative to each other. The first is what we call, the globalization of regional innovation system/ weakening of interregional hierarchy scenario: As many regions develop their niches in the global economy, the national "anchor" regions loses its relative importance as the importer and distributor of new knowledge, rendering the domestic interregional hierarchy less significant as a result. The second scenario is the globalization of national innovation system/ persistence of interregional hierarchy. The nation's traditional anchor region becomes even more active in importing technology and distributing it to other regions of the country. To test which scenario is closer to reality, we employ social network metrics to analyse interregional technology diffusion networks using Chinese patent licensing data for the 1998-2013 period. Our findings support the second scenario, showing that the influence of the traditional anchor region persists in the hierarchical network structure as new cities enter the network. We found five anchor regions: the three usual suspects-Beijing, Shanghai, and Shenzhen-plus two that were slightly unexpected-Dongguan and Suzhou.
Since 1993, Indonesia has experienced both upward and downward restructuring of state power throu... more Since 1993, Indonesia has experienced both upward and downward restructuring of state power through the ASEAN Free Trade Agreement (AFTA) and fiscal decentralization, respectively. In this study, we investigate the impact of state restructuring on regional disparity. Indonesia is an interesting case because it is one of the few economies in which the upward and downward restructuring of state power occurred almost simultaneously. Based on a panel data analysis of micro-level firm data for the period 1993-2005, we find evidence of neoclassical convergence. Furthermore, decentralization was found to slow this convergence, while the AFTA had no statistically significant impact during the study period.
We fully agree with Hassink, Gong and Marques (this issue) that Anglophone economic geography con... more We fully agree with Hassink, Gong and Marques (this issue) that Anglophone economic geography confers dominant power. We also agree that this hegemony narrows the way in which we see non-Anglophone part of the world. We doubt, however, that a search for different traditions within non-Anglophone academia will actually yield something that could be used to form a counter-hegemon. Instead, we argue that it is location that matters, not language. The counter hegemon should be constructed, not through a plea for diversity in Anglo-American academia, but through the formation of academic communities in other international regions. We will illustrate this with some examples from South Korea and East Asia, areas with which the three authors of this commentary are especially familiar. As Hassink, Gong and Marques argue, different places have different research cultures. As in China (the region they discuss), in South Korea the link between economic geography and regional policy has been relatively tight. There are many Korean "Departments of Regional Development," whose faculty members include geographers. Also, the planners in those departments often borrow theories from economic geography. Those who teach in these departments have many opportunities to get involved in policy-making at various levels. We also know many geographers who do academic consultancy work in real estate, tourism, planning and other areas. This is certainly a very different culture from that of Anglophone academia. However, we doubt these cultural differences have led to the development of theories or approaches that distinguish South Korean economic geography from the Anglophone kind. One might think that, since academic consultancy enables scholars to test out theories within real-world settings, it would therefore help them modify and improve upon theories that South Korean academics have adopted from Anglophone academia. However, this simple model of knowledge utilisation does not hold in most cases. A policy is not a direct application of academic theory, but a combination of various elements, among which academic theory is only one (
For the understanding of the accumulation strategy behind a mega urban development project, the d... more For the understanding of the accumulation strategy behind a mega urban development project, the distinction should be made between the two different strategies of capital accumulation, which we term (1) rent-extraction strategy (RES) and (2) socioeconomic transformation of space strategy (STSS). This distinction is important because each is preferred by actors at different scales, thereby creating conflicts between them. Local actors are likely to prefer RES because its benefits mainly fall in the local area. National actors often prefer STSS because it symbolises state-level commitment to a business-friendly economic environment. Negotiation between these two strategies constitutes a major part of the formation of accumulation strategy. We test this theoretical prediction against the case of Songdo International City in South Korea. We find that the history of the project is consistent with our theoretical prediction.
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Papers by Jung Won Sonn