Article: Impacts of business environment changes on global manufacturing in the Chinese Greater Pearl River Delta: a supply chain perspective

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TitleImpacts of business environment changes on global manufacturing in the Chinese Greater Pearl River Delta: a supply chain perspective
AuthorsZhang, A1
Huang, GQ1
Liu, XM
KeywordsFacility location
Global manufacturing
Mixed integer programming
Pearl River Delta
Supply chain management
Issue Date2011
PublisherRoutledge. The Journal's web site is located at http://www.tandf.co.uk/journals/routledge/00036846.html
CitationApplied Economics, 2011, v. 44 n. 34, p. 4505-4514 [How to Cite?]
DOI: http://dx.doi.org/10.1080/00036846.2011.591737
AbstractBusiness operating conditions have changed substantially in the Chinese Greater Pearl River Delta (GPRD) due to the Chinese currency appreciation, rising labour costs, highly volatile oil prices and new processing trade policies. Such changes have triggered manufacturers to rethink their global operations. This article studies potential global manufacturing trends from a supply chain perspective. A mixed integer programming model suggests that these changes have negatively affected the region's competitive advantages as its labour-intensive production mainly targets at the mass market and competes on low costs. Three production relocation trends are affirmed, i.e. the relocation to lower-cost areas within China, lower-cost Asian countries and areas near end markets. However, it is also discovered that the GPRD region still attracts businesses with its formation of industrial clusters, the enhanced comparative advantage against competing regions in inland China or Asian lower-cost countries under high oil prices, and Hong Kong's being a robust location choice to host trade operations. © 2012 Taylor & Francis.
ISSN0003-6846
2011 Impact Factor: 0.459
2011 SCImago Journal Rankings: 0.032
DOIhttp://dx.doi.org/10.1080/00036846.2011.591737
ISI Accession Number IDWOS:000301545600008
ReferencesReferences in Scopus
DC Field
Value
dc.contributor.authorZhang, A
dc.contributor.authorHuang, GQ
dc.contributor.authorLiu, XM
dc.date.accessioned2012-08-08T08:38:33Z
dc.date.available2012-08-08T08:38:33Z
dc.date.issued2011
dc.description.abstractBusiness operating conditions have changed substantially in the Chinese Greater Pearl River Delta (GPRD) due to the Chinese currency appreciation, rising labour costs, highly volatile oil prices and new processing trade policies. Such changes have triggered manufacturers to rethink their global operations. This article studies potential global manufacturing trends from a supply chain perspective. A mixed integer programming model suggests that these changes have negatively affected the region's competitive advantages as its labour-intensive production mainly targets at the mass market and competes on low costs. Three production relocation trends are affirmed, i.e. the relocation to lower-cost areas within China, lower-cost Asian countries and areas near end markets. However, it is also discovered that the GPRD region still attracts businesses with its formation of industrial clusters, the enhanced comparative advantage against competing regions in inland China or Asian lower-cost countries under high oil prices, and Hong Kong's being a robust location choice to host trade operations. © 2012 Taylor & Francis.
dc.description.natureLink_to_subscribed_fulltext
dc.identifier.citationApplied Economics, 2011, v. 44 n. 34, p. 4505-4514 [How to Cite?]
DOI: http://dx.doi.org/10.1080/00036846.2011.591737
dc.identifier.doihttp://dx.doi.org/10.1080/00036846.2011.591737
dc.identifier.epage4514
dc.identifier.hkuros212387
dc.identifier.isiWOS:000301545600008
dc.identifier.issn0003-6846
2011 Impact Factor: 0.459
2011 SCImago Journal Rankings: 0.032
dc.identifier.issue34
dc.identifier.scopuseid_2-s2.0-80052066588
dc.identifier.spage4505
dc.identifier.urihttp://hdl.handle.net/10722/155947
dc.identifier.volume44
dc.languageeng
dc.publisherRoutledge. The Journal's web site is located at http://www.tandf.co.uk/journals/routledge/00036846.html
dc.publisher.placeUnited Kingdom
dc.relation.ispartofApplied Economics
dc.relation.referencesReferences in Scopus
dc.subjectFacility location
dc.subjectGlobal manufacturing
dc.subjectMixed integer programming
dc.subjectPearl River Delta
dc.subjectSupply chain management
dc.titleImpacts of business environment changes on global manufacturing in the Chinese Greater Pearl River Delta: a supply chain perspective
dc.typeArticle
Author Affiliations
  1. The University of Hong Kong
  2. Birkbeck University of London