Rapid urbanization in Asia challenges conventional urban models developed in the West in terms of economic globalization and local development. The new desakota model proposed by McGee and Ginsburg describes unique spatial structure in Asian urbanization. Although urban morphology is highlighted, urbanization processes driven by globalization and local economies are not emphasized in this descriptive model. To elaborate on how economic globalization influences urbanization processes and shapes unique spatial features in Asia, this study adopts cellular automata to develop a GIS-based urban model and simulate how foreign direct investments (FDIs), an important indicator of economic globalization, influence the local economy and the evolution of spatial structures with various levels of foreign flux. The Taipei case study confirms that growing FDIs and service activities are key factors stimulating the growth of desakota regions and the formation of a mega-urban region during the urbanization process.
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