Geography plays a crucial role in shaping the economy. The city of Shenzhen in China is an evident example. Its defining geographic feature is proximity to the coast and the Pearl River, which lowers transportation costs and allows maintaining the competitive production of IT components.
In geographic terms, Shenzhen’s main feature is its position in the Pearl River Delta on the coast of the South China Sea. This circumstance offers considerable advantages in terms of transportation – it is a known fact that “being on a coast or a navigable river” facilitates trade and commerce (Henderson e al. 366). Shenzhen possesses both these characteristics: the Pearl River connects the city with the inland regions of China, while the harbor on the South China Sea coast enables it to engage in maritime trade. However, the geographical position of Shenzhen in mainland China has also impeded its economic growth for the greater part of the region’s history.
Judging on the facts listed above, Shenzhen was bound to become an important trade center early on, but this did not happen because neighboring Hong Kong overshadowed it during most of its existence. The significant advantage of Hong Kong was its position on an island, which was close enough to the shore and the Pearl River for effective communication and transportation, but easier to defend due to being surrounded by water.
However, what was initially a benefit turned into a disadvantage because of “rapid industrialization and urbanization” (Henderson e al. 365). Hong Kong Island proved too small for the ever-growing urban population, meaning that mainland coastal territories – such as Shenzhen – had a considerable economic potential in the industrial age precisely because of their geographic position.
The economic and geographic development of Shenzhen during the last half-century illustrates the benefits of its geography. In 1979, Shenzhen became the country’s first Special Economic Zone (SEZ) (Lindtner et al. 89). The government has chosen Shenzhen due to its position on the coast and on the major river, as the proximity to both “lowers transportation costs” (Rappaport and Sachs 35).
In 1979, Shenzhen’s population was approximately 50,000 people, but it superseded 10 million by 2010 (Lindtner et al. 89). Judging by these facts, the decision to make Shenzhen an SEZ because of its geographic position demonstrated a clear understanding of how geography influences commerce and the economy in general.
Contemporary Shenzhen is particularly notable for its success in manifesting IT components. During the 1980s, companies from the developed world, including those in the IT industry, began moving their production facilities to regions with lower labor costs (Lindtner et al. 89). In this respect, “Shenzhen constituted a particularly attractive site,” as the Pearl River provided workforce from inland China, and its harbor on the South China Sea coast enabled cheap transportation (Lindtner et al. 89). Consequently, Shenzhen’s geography enabled the city to become one of the world’s greatest manufacturing hubs for IT parts.
Geographic features played a defining role in Shenzhen’s economic history. Before the rapid urbanization, Hong Kong superseded it due to being on an island. Yet in the age of urbanization, Shenzhen’s location in the mainland, combined with the coastland’s benefits, made it a perfect place for an industrial metropolis.
Works Cited
Henderson, J, Vernon, et al. “The Global Distribution of Economic Activity: Nature, History, and the Role of Trade.” The Quarterly Journal of Economics, vol. 133, no/ 1, 2018, pp. 357–406.
Lindtner, Silvia, et al. “Designed in Shenzhen: Shanzhai Manufacturing and Maker Entrepreneurs.” Proceedings of The Fifth Decennial Aarhus Conference on Critical Alternatives, Aarhus, Denmark, August 17-21, 2015, edited by Olav. W. Bertelsen, Aarhus UP, 2015, pp. 85-96.
Rappaport, Jordan, and Sachs, Jeffrey D. “The United States as a Coastal Nation.” Journal of Economic Growth, vol. 8, 2003, pp. 5-46.