Local protectionism and regional specialization: evidence from China's industries
AbstractThis paper uses a dynamic panel estimation method to investigate the determinants of regional specialization in Chinaâs industries, paying particular attention to local protectionism. Less geographic concentration is found in industries where the past tax-plus-profit margins and the shares of state ownership are high, re- flecting stronger local government protection of these industries. The evidence also supports the scale-economies theory of regional specialization. Finally, the overall time trend of regional specialization of Chinaâs industries is found to have reversed an early drop in the mid 1980s, and registered a significant increase in the later years.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of International Economics.
Volume (Year): 63 (2004)
Issue (Month): 2 (July)
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Web page: http://www.elsevier.com/locate/inca/505552
Other versions of this item:
- Chong-En Bai & Yingjuan Du & Zhigang Tao & Sarah Y. Tong, 2003. "Local Protectionism and Regional Specialization: Evidence from China’s Industries," William Davidson Institute Working Papers Series 2003-565, William Davidson Institute at the University of Michigan.
- F1 - International Economics - - Trade
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- P2 - Economic Systems - - Socialist Systems and Transition Economies
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