Overseas Chinese Investments in Transition: The Case of Dongguan

An economic geographer based in Hong Kong presents a study of overseas Chinese investment coming from Hong Kong and Taiwan to Dongguan, a rapidly developing manufacturing metropolis in China's Pearl River Delta, attempting to compare the transformation of these two major sources of investment during the past quarter century. Based on systematic field work and interviews at ca. 60 firms through mid-2006, the paper argues that Hong Kong and Taiwan investments have followed different transformation paths with regard to sectoral composition, investment motivations, market orientation, entry modes, and strategies in response to institutional changes. Most of the substantive differences are related to the distinctive comparative advantages of the two source regions and the specific character of their interactions with the host region