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Regional Specialization And Dynamic Pattern Of Comparative Advantage: Evidence From China'S Industries 1988–2001

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  • Zhicheng Liang
  • Luodan Xu

Abstract

Different comparative advantages may affect the pattern of regional specialization in many ways. In this paper, by employing panel data covering 20 main industrial sectors in 29 Chinese provinces over the period of 1988–2001, and applying the generalized method of moment techniques, the determinants of regional specialization in China are investigated, paying particular attention to the role of dynamic comparative advantages. It is found that changing comparative advantages arising from technical efficiency improvement, scale economies enhancement, and growing economic openness contribute positively and significantly to China's regional specialization.

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  • Zhicheng Liang & Luodan Xu, 2004. "Regional Specialization And Dynamic Pattern Of Comparative Advantage: Evidence From China'S Industries 1988–2001," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 16(3), pages 231-244, November.
    • Handle: RePEc:bla:revurb:v:16:y:2004:i:3:p:231-244
    DOI: 10.1111/j.1467-940X.2005.00087.x
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