Backward Linkages of Cross-border Production Networks of Taiwanese PC Investment in the Pearl River Delta, China.

In the new era of globalisation, participation in the global production network (GPN) initiated by transnational corporations (TNC) has created upgrading possibilities for local firms in developing countries, through the backward linkages of TNCs. Drawing upon the GPN approach with emphasis on its conceptualisation of embeddedness, this study demonstrates that cross-border production networks of Taiwanese PC investment in Dongguan could be regarded as an exclusive network, which is characterised by closed backward linkages with pre-established Taiwanese electronics suppliers while relatively weak ties with local suppliers in Dongguan. One of the results is that cross-border production of Taiwanese PC investment has not substantially brought about industrial upgrading of Dongguan over the past two decades, which is different from previous empirical experiences of TNC-driven clusters in other countries and regions in East Asia.