Economic Strategies for Mature Industrial Economies
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Economic Strategies for Mature Industrial Economies

Edited by Peter Karl Kresl

The global economy has transformed during the last few decades. Though the changes have benefited some, many mature industrial economies have not been treated well by the changes they have seen and have been forced to adapt to dramatically altered circumstances. In this collection of original papers, economists and geographers from Asia, North America and Europe examine the policy initiatives that have succeeded in their countries.
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Chapter 7: Cooperation and Competition Between Cities: Urban Development Strategies in Hong Kong and Shenzhen

Jianfa Shen


Jianfa Shen INTRODUCTION Urban competition has been intensified as cities compete against each other to attract TNCs and their regional headquarters, international capital and talents in the age of globalization. Increasing studies have focused on urban strategies to compete against other cities (Begg, 1999). There is growing sense of city rivalry. A city’s growth is often considered at the expense of another city resulting in ‘destructive interplace competition’ (Brenner and Theodore, 2002: 5 and 20). With a few exceptions, intercity competition is considered a negative phenomenon. In the context of the Pearl River Delta (PRD) and Yangtze River Delta (YRD), Chen (2007: 195) argued that ‘inter-local or intra-regional competition breeds fragmentation or even disintegration’. But there is inadequate explanation for the emergence of such keen competition or solutions to such a situation. Indeed, cities may also cooperate to enhance the competitive advantage of both cities by seeking agglomeration effects, facilitating innovation processes, managing externalities, avoiding duplicative capacities, improving efficacy and minimizing risks (Heeg et al., 2003). While many studies have been done on how cities adopt various strategies to enhance urban competitiveness and the ranking of urban competitiveness of various cities, fewer studies have examined in detail the nature of intercity competition and how the growth of one city actually affects another city (Begg, 1999; Jessop and Sum, 2000; So and Shen, 2004). Furthermore, there are also many studies on intercity cooperation. It has been rare to study intercity competition and cooperation of the same pair of cities at the...

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