1. Stanley Wing-fai NG, CEO, Registered Professional Planner (Hong Kong), MRTPI(UK), MHKIP,MGISA(HK), MSc(HKU). BSc.(NTU) April, 2006 Cities Competitiveness & Risk Ranking (A Preliminary Study on Correlation between Expert Ranking and Demographic Indicators)

2. Cities/ Counties Based Investment Decisions Statistics and Census Demographic Economic Indicators Personnel Indicators 2300+ Cities/ Counties Input 2 Database Input 1 Expert Ranking System Competitiveness Investment Index Empirical 50-108 cities/ ind. zones Correlation Analysis General Rules Branch/ Factory/ Outlet Decision Market,ResourcesLocal Gov Sch. Relations Other Factors

3. Input 1: Expert Ranking System Cities’ Competitiveness & Risks Several Taiwan scholars’ Studies for Trade Associations “Analysis on Competitiveness and Risks for China Cities” 2001-2004 published Survey and Expert Ranking System –Questionnaire Survey –Focus Group –Case Studies, Factory Visits Publication Ref: –“ 兩力兩度見商機 – 2004 中國大陸地區投資環境與風險調查 ” Author: Taiwan Electrical and Electronic Manufacturers’ Association 台灣區電機電子工業同業公會, ISBN:986-7877-12-8, 2004. 主任委員：焦佑君，主持：呂鴻德，協同主持：黃銘章，顧問：高孔廉 – 生產力中心 China Productivity Center (Taiwan), –“ 進軍中國大陸市場機遇與挑戰 ” ，外貿協會 Taiwan External Trade Development Council

4. Index Derived Ranking in Competitiveness – 108 cities – Major Cities and Counties include 108 major cities, industrial zones, Special Economic Region – Competitive power is calculated by: infrastructure, finance status, investment environment, economic status and employment. Ranking in Overall Investment Index – 41 cities – Investment Risks Local Governance Risks, Environmental Risks, Social Risks etc – Investment Index is calculated by the Competitive Power, Investment environment, Investment risk of a city.

5. Expert Ranking :- Empirical data from case studies – Case studies, interview, survey – In-depth case studies of Taiwanese factories/ investors – 108 cities/ counties/ industrial zones ranked depends on cases and data readiness Not applicable to cities/ counties not ranked – about 100 cities out of 2300+ cities/ counties General limitation of expert ranking system – personal factors – different scale/ parameters

6. Input 2: Census & Statistics Data Demographics and Economy Census & Statistics Data in China – 2300+ Cities Data Availabilities –USA/ UK /HK system vs. China system –national data vs. local data –Data reliabilities, personnel vs. government corporate Data Release Time Frame –2005, national and provincial data –2004, cities/ counties and districts inside cities –2003, cities/ counties and districts rectified in 2005

7. Demographics and Statistics for 2300+ Cities Demographics and Statistics for 2300+ Cities Jointly developed by ACMR and MapAsia Jointly developed by ACMR and MapAsia CHINA infoMap

8. Exclusive License

9. Sample of Bar Chart

10. Thematic Map – Pie Chart

11. Compare Expert Ranking with Statistics Regression Analysis ANOVA Analysis (Analysis of Variance) Map Overlay Analysis Parameters –Competitiveness and Investment Index –Variables in wages, population, GDP, Education Attainment, Industrial Output

12. Basic Information China Census data 2003 was used. (2003 data rectified in 2005) Factors for the calculation: Wages, GDP, Population, Industry and Education “Factors” against Competitive Power “Factors” against Investment Index

13. Competitive Power Calculated by: infrastructure, financial status, investment environment, economic status and employment of a City. Parameters against Competitive Power –Wages- total wages of the city, Million RMB –GDP – Million RMB –Population – Million –Education – High school student, Middle school student in million –Industry Output Million 108 Cities included in the Expert Ranking System

14. Competitive Power of Major Cities (Expert Ranking)

15. Wages of China Major Cities

16. Population of China Major Cities

17. GDP of China Major Cities

18. Industrial Output of China Major Cities

19. Education Attainment

20. Wages against Competitive Power

21. Population against Competitive Power

22. GDP against Competitive Power

23. Education Attainment against Competitive Power

24. Industrial Output against Competitive Power

25. Investment Index Calculated by the competitive power, investment environment and investment risk Parameters in Wages, population, GDP, Education and Industrial Output against Investment Index 41 Cities included in the Expert Ranking System

26. Investment Index of China Major Cities (Expert Ranking)

27. Wages against Investment Index

28. GDP against Investment Index

29. Population against Investment Index

30. Education against Investment Index

31. Industrial Output against Investment Index

32. 1. Expert Ranking of Competitiveness positive correlate with some major demographic indicators, i.e. GDP, per capital GDP, output of secondary industries, wages 2.Correlation of Experts’ Investment Index (include Risks Index) not so significant. Preliminary Findings:-

33. GDP, per capita GDP, Industrial Output and Wages having higher correlation with Competitive Power among other factors Population and Education Attainment having lower correlation with Competitive Power among the factors. For the Investment Index, none of the factors obtain a significant correlation with investment index. For further analysis, time series analysis may improve the predictive model of the competitive power and Investment Index.

34. Thank You Stanley Ng (CEO), stanley@mapasia.comstanley@mapasia.com Team member: Stanley NG, CEO Winsome Wong, GIS Specialist Ng Wing Yiu, Data Manager MapAsia.com City Country Consultancy Ltd Hong Kong. China. Kuala Lumpur. Singapore mapsale@mapasia.commapsale@mapasia.com, 852-27409680,