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Dynamic externalities and local growth: A panel data analysis applied to Chinese provinces

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  • Batisse, Cecile

Abstract

This paper provides empirical evidence on the relation between industrial structure and growth performance in Chinese provinces. The influence of two types of variables is examined along with traditional production factors: industrial structure (degree of concentration, diversity in the industrial environment and market structure) and regional growth factors (level of initial development, geographic localization). Using panel data from a sample covering 30 industrial sectors for 29 Chinese provinces (excluding Tibet) over the 1988 to 1994 period, the econometric analysis shows first that if the industrial structure has some influence on local growth, much of the effect is region-specific. Second, it appears that sectors located in coastal provinces and those located in interior provinces have been subject to different growth impulses. Namely, it seems that interior provinces have not succeeded in benefiting from new opportunities given by market mechanisms during the studied period.

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Bibliographic Info

Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 13 (2002)
Issue (Month): 2-3 ()
Pages: 231-251

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Handle: RePEc:eee:chieco:v:13:y:2002:i:2-3:p:231-251

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Web page: http://www.elsevier.com/locate/chieco

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References

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  1. Song, Shunfeng & Chu, George S. -F. & Chao, Rongqing, 2000. "Intercity regional disparity in China," China Economic Review, Elsevier, vol. 11(3), pages 246-261.
  2. Mody, Ashoka & Wang, Fang-Yi, 1997. "Explaining Industrial Growth in Coastal China: Economic Reforms . . . and What Else?," World Bank Economic Review, World Bank Group, vol. 11(2), pages 293-325, May.
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  5. Kanbur, Ravi & Zhang, Xiaobo, 1999. "Which Regional Inequality? The Evolution of Rural-Urban and Inland-Coastal Inequality in China from 1983 to 1995," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 686-701, December.
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  9. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 18-29, Summer.
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  12. Demurger, Sylvie, 2001. "Infrastructure Development and Economic Growth: An Explanation for Regional Disparities in China?," Journal of Comparative Economics, Elsevier, vol. 29(1), pages 95-117, March.
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  14. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  15. Henderson, Vernon & Lee, Todd & Lee, Yung Joon, 2001. "Scale Externalities in Korea," Journal of Urban Economics, Elsevier, vol. 49(3), pages 479-504, May.
  16. Laffont, Jean-Jacques & Qian, Yingyi, 1999. "The dynamics of reform and development in China: A political economy perspective," European Economic Review, Elsevier, vol. 43(4-6), pages 1105-1114, April.
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Citations

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Cited by:
  1. Henri L.F. de Groot & Jacques Poot & Martijn J. Smit, 2007. "Agglomeration, Innovation and Regional Development: Theoretical Perspectives and Meta-Analysis," Tinbergen Institute Discussion Papers 07-079/3, Tinbergen Institute.
  2. Xiaolei Qian & Russell Smyth, 2006. "Growth Accounting for the Chinese Provinces 1990-2000: Incorporating Human Capital Accumulation," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 4(1), pages 21-37.
  3. Pei Li, 2008. "Metropolitan economic growth and spatial dependence: Evidence from a panel of China," Psychometrika, Springer, vol. 3(2), pages 277-295, June.
  4. Jean-François BRUN & Jean-Louis COMBES & Mary-Françoise RENARD, 2001. "Are There Spillover Effects Between Coastal and Non-Coastal Regions in China ?," Working Papers 200113, CERDI.
  5. Jean-François Frun & Jean-Louis Combes & Mary-Françoise Renard, 2002. "Y-a-t-il une diffusion de la croissance entre les provinces chinoises ?," Revue d’économie du développement, De Boeck Université, vol. 16(3), pages 61-72.
  6. Mariana Pereira & Isidro Soloaga, 2012. "Determinantes del crecimiento regional por sector de la industria manufacturera en México, 1988-2008," Serie documentos de trabajo del Centro de Estudios Económicos 2012-05, El Colegio de México, Centro de Estudios Económicos.
  7. Ayadi, Mohamed & Mattoussi, Wided, 2014. "Disentangling the pattern of geographic concentration in Tunisian manufacturing industries," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  8. Qinghua Zhang & Heng-fu Zou, 2012. "Regional Inequality in Contemporary China," Annals of Economics and Finance, Society for AEF, vol. 13(1), pages 113-137, May.
  9. Shihe Fu & Junjie Hong, 2011. "Testing Urbanization Economies In Manufacturing Industries: Urban Diversity Or Urban Size?," Journal of Regional Science, Wiley Blackwell, vol. 51(3), pages 585-603, 08.
  10. ZHAO Ting & ZHAO Wei, 2012. "Dynamic Externalities and Manufacturing Productivity: An empirical comparison among China's top three municipalities," Discussion papers 12072, Research Institute of Economy, Trade and Industry (RIETI).
  11. Henri L.F. de Groot & Jacques Poot & Martijn J. Smit, 2007. "Agglomeration, Innovation and Regional Development: Theoretical Perspectives and Meta-Analysis," Tinbergen Institute Discussion Papers 07-079/3, Tinbergen Institute.
  12. Isidro Soloaga & Mariana Pereira, 2013. "Determinants of Regional Growth by Manufacturing Sector in Mexico, 1988-2008," Working Papers 0713, Universidad Iberoamericana, Department of Economics.
  13. Christ, Julian P., 2009. "New Economic Geography reloaded: localized knowledge spillovers and the geography of innovation," FZID Discussion Papers 01-2009, University of Hohenheim, Center for Research on Innovation and Services (FZID).
  14. Yingxin Shi & Mototsugu Fukushige, 2013. "Long-Run Fiscal Multiplier for Autonomous Prefectures in China," Discussion Papers in Economics and Business 13-10, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).

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