Table 3.

Summary of variables used to categorize cities into Hymer’s (1972) tiers for automotive and commercial banking foreign direct investment

Evaluation criteriaCategory frequency and descriptive statisticsSource
VariableAutomotive investmentsCommercial banking investments
City overall international connectivityThe GaWC ranking of world cities provides an indication of global or world city membership, the higher tier cities are more likely to be tier 1 cities and the lower tier cities are more likely to be tier 2 cities or tier 3 citiesAlpha++
Alpha+
Alpha
Alpha−
Beta+
Beta
Beta−
Gamma+
Gamma
Gamma−
High Sufficiency
Sufficiency
No category
4
11
13
18
18
5
10
8
1
5
7
13
105
Globalization and World Cities Research Network (www.lboro.com/gawc)
Capital market presentA capital market indicates a tier 1 or 2 city, in combination with high connectivity a tier 1 city is more likely, with low connectivity a tier 2 cityPresent:
Not present:
Unclear/other:
66
57
95
World Stock Exchanges
(www.world-stock-exchanges.net)
Capital of countryOn the other hand, a tier 2 city must have at least an airport or seaport. If it is a capital of a country, then it is clearly a tier 2 city. A tier III city will never have an airport and will never be a capital, but it may have a seaportWill be associated with tier 1 or 2 cities, distinguished by connectivityPresent:
Not present:
Unclear/other:
53
165
0
World Capitals (www.infoplease.com/ipa/A0855603.html)
University presentThe presence of top ranked universities is expected to be associated with tier 1 citiesPresent:
Not present:
Unclear/other:
82
136
0
Shanghai Ranking Top University Ranking
(www.shanghairanking.com)
Presence of airportThe more central the city in the global air travel network the more likely it is tier 1 or tier 2Present:
Not present:
Unclear/other:
66
58
94
The A-Z Group
(https://azfreight.com/)
Presence of seaportThe presence of a seaport is expected to be associated with tier 2 and 3 citiesPresent:
Not present:
Unclear/other:
69
142
7
World Port Source (www.worldportsource.com)
Population (2000–2013)
(2014–2021)
If the population is larger than 2 million, then the city is a tier 2 cityTier 2 cities have a population of at least one and a half million peopleMin:
Mean:
Max:
229
3.7 M
35.4 M
City Population
OECD (http://stats.oecd.org)
Other (www.citypopulation.de)

Note:

See Supplementary_Online_Materials_Document_1_-_Classification_of_Cities and Supplementary_Online_Materials_Document_2_-_Cities Classification Data

or Create an Account

Close Modal
Close Modal