BACKWARD LINKAGES OF CROSS-BORDERPRODUCTION NETWORKS OF TAIWANESE PC INVESTMENT IN THE PEARL RIVER DELTA,CHINA

摘要

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