Tracing paths to internationalisation: historical trajectories, ownership advantages and outward FDIs from Shanghai and Shenzhen
Abstract
This research argues that the historical trajectories of city-regions shape patterns of outward foreign direct investments (OFDIs) by influencing city-level ownership advantages. Drawing on Dunning’s ownership-location-internalisation (OLI) paradigm and an evolutionary economic geography perspective, we examine how these dynamics unfold in two major Chinese cities – Shanghai and Shenzhen. Our analysis shows that city-level attributes – industrial structure, institutional contexts, and technological and knowledge bases – determine ownership advantages. These advantages, in turn, affect OFDI choices about host economies, target sectors, and motives of internationalisation.
Fields of Study & Subjects
International Business and FDI
Global trade and economics
Global trade
sustainability
and social impact
Publication details
- Journal / source
- Area Development and Policy
- Publisher
- Informa UK Limited
- Volume
- 11
- Issue
- 2
- Pages
- 209–225
- Publication date
- 5 February 2026
- Language
- EN