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

TitleImpacts of business environment changes on global manufacturing in the Chinese Greater Pearl River Delta: a supply chain perspective
Authors
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
Citation
Applied Economics, 2011, v. 44 n. 34, p. 4505-4514 How to Cite?
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.
Persistent Identifierhttp://hdl.handle.net/10722/155947
ISSN
2014 Impact Factor: 0.613
2014 SCImago Journal Rankings: 0.427
ISI Accession Number ID
References

 

DC FieldValueLanguage
dc.contributor.authorZhang, Aen_US
dc.contributor.authorHuang, GQen_US
dc.contributor.authorLiu, XMen_US
dc.date.accessioned2012-08-08T08:38:33Z-
dc.date.available2012-08-08T08:38:33Z-
dc.date.issued2011en_US
dc.identifier.citationApplied Economics, 2011, v. 44 n. 34, p. 4505-4514en_US
dc.identifier.issn0003-6846en_US
dc.identifier.urihttp://hdl.handle.net/10722/155947-
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.en_US
dc.languageengen_US
dc.publisherRoutledge. The Journal's web site is located at http://www.tandf.co.uk/journals/routledge/00036846.htmlen_US
dc.relation.ispartofApplied Economicsen_US
dc.subjectFacility locationen_US
dc.subjectGlobal manufacturingen_US
dc.subjectMixed integer programmingen_US
dc.subjectPearl River Deltaen_US
dc.subjectSupply chain managementen_US
dc.titleImpacts of business environment changes on global manufacturing in the Chinese Greater Pearl River Delta: a supply chain perspectiveen_US
dc.typeArticleen_US
dc.identifier.emailZhang, A: azhang08@hku.hken_US
dc.identifier.emailHuang, GQ: gqhuang@hku.hk-
dc.identifier.authorityHuang, GQ=rp00118en_US
dc.description.naturelink_to_subscribed_fulltexten_US
dc.identifier.doi10.1080/00036846.2011.591737en_US
dc.identifier.scopuseid_2-s2.0-80052066588en_US
dc.identifier.hkuros212387-
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-80052066588&selection=ref&src=s&origin=recordpageen_US
dc.identifier.volume44en_US
dc.identifier.issue34en_US
dc.identifier.spage4505en_US
dc.identifier.epage4514en_US
dc.identifier.isiWOS:000301545600008-
dc.publisher.placeUnited Kingdomen_US
dc.identifier.scopusauthoridLiu, X=50461958100en_US
dc.identifier.scopusauthoridHuang, GQ=7403425048en_US
dc.identifier.scopusauthoridZhang, A=35147462100en_US

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