Abstract:

Extra-regional linkages can benefit regional development by introducing supplement resources and technologies. They also enrich the local knowledge base, keeping regions away from depression due to lock-in effects. Global-local interaction (GLI) research represents the academic effort to theorize this process by examining the interplay between a wide array of actors at multi-scales within particular territorial confines. It raises four critical questions regarding the conditions, regional differences, channels, and actors for interaction. The literature has documented that the relatedness between local and nonlocal inputs determines the probability of GLI. Local capabilities determine the extent of GLI. The literature also reveals that the leading and most lagging behind regions tend to benefit from GLI. Knowledge diffusion, foreign investment, and international trade are primary elements that support GLI. As one region continues to develop, the immigrants and nonlocal institutions may enrich the GLI. Conventionally, the literature on GLI is firm-centric. Recent advances highlight the role of individuals, such as entrepreneurs and employees. There is also increasing awareness of the non-economic agency, especially the institutional agency. Overall, an in-depth examination is still required for understanding the scales, dynamics, and agencies of GLI for regional development. Grounded in the context of China's regional restructuring and opening-up, this study proposes a framework to model GLI in China and discusses its potential for future studies.

Key words: regional development, economic restructuring, globalization, global network, locality