Spatial selectivity and intercity cooperation between Guangdong and Hong Kong

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Abstract
City-regionalism plays an increasingly important role in China’s economic development. This paper analyses new forms of institutional arrangements that promote city-regional governance in the case of Hong Kong and Guangdong. Focusing on implementing the Closer Economic Partnership Arrangement (CEPA), we examine two research questions: Why are Guangdong and cities in the PRD strategically selected to implement CEPA and embed Hong Kong-based circulatory capital? How do governments at different scales build coordinated relationships to implement CEPA? Building upon the literature on state rescaling, we argue that governments have engaged in a scalar division of administration – a form of institutional infrastructure that aims to design and implement state strategies of urban and regional development. Within this division, the national government plays a role in steering and decision-making, Guangdong provincial government in coordination and facilitation, and urban governments in Shenzhen, Guangzhou, and Zhuhai in actual implementation. CEPA implementation is built upon vertical linkages between governments at different levels in the Mainland and HKSAR government, and horizontal linkages between three free trade subzones (Qianhai, Nansha, and Hengqin) and Hong Kong-based firms and entrepreneurs.
Funding Information
  • National Natural Science Foundation of China (41130747)
  • National Natural Science Foundation of China (41371174)
  • National Natural Science Foundation of China (41829101)
  • the Ministry of Education Foundation of China (13YJC790222)

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