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Protectionism and Industry Location in Chinese Provinces

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  • Cecile Batisse
  • Sandra Poncet

Abstract

This paper investigates the determinants of activities' location in Chinese provinces based on a unique panel data set, paying particular attention to the role of local protectionism. We estimate a model of production location across Chinese provinces that combines factor endowments and geographical consideration. Results emphasize that the dynamics of comparative advantages and the forces of the new geographic economy are at work in Chinese provinces. Estimations, however, lend strong support to the role of local protectionism. The location of economic activities in Chinese provinces does thus not exclusively follow the logic of the market.

Suggested Citation

  • Cecile Batisse & Sandra Poncet, 2004. "Protectionism and Industry Location in Chinese Provinces," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(2), pages 133-154.
    • Handle: RePEc:taf:jocebs:v:2:y:2004:i:2:p:133-154
    DOI: 10.1080/14765280410001684797
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    2. Maurice Catin & Christophe Van Huffel, 2004. "Ouverture économique et inégalités régionales de développement en Chine : le rôle des institutions," Mondes en développement, De Boeck Université, vol. 128(4), pages 7-23.
    3. Grether, Jean-Marie & Hotz, Irina & Mathys, Nicole A., 2014. "Industry location in Chinese provinces: Does energy abundance matter?," Energy Economics, Elsevier, vol. 44(C), pages 383-391.
    4. Christopher Edmonds & Sumner J. La Croix & Yao Li, 2006. "The China's Rise as an International Trading Power," Economics Study Area Working Papers 88, East-West Center, Economics Study Area.
    5. Zheng, Jinghai & Bigsten, Arne & Hu, Angang, 2009. "Can China's Growth be Sustained? A Productivity Perspective," World Development, Elsevier, vol. 37(4), pages 874-888, April.
    6. Irina Hotz, 2012. "Energy endowments, barriers to trade and industry location in Chinese provinces," IRENE Working Papers 12-02, IRENE Institute of Economic Research.
    7. Dan He & Manxin Zheng & Wei Cheng & Yui-yip Lau & Qingmei Yin, 2019. "Interaction between Higher Education Outputs and Industrial Structure Evolution: Evidence from Hubei Province, China," Sustainability, MDPI, vol. 11(10), pages 1-19, May.
    8. Y Wei & X Liu, 2006. "Productivity spillovers from R&D, exports and FDI in China's manufacturing sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(4), pages 544-557, July.
    9. Robert J R Elliott & Puyang Sun & Tong Zhu, 2021. "Energy Abundance, the Geographical Distribution of Manufacturing, and International Trade," Discussion Papers 21-16, Department of Economics, University of Birmingham.
    10. Dan He & Zhijing Sun & Peng Gao, 2019. "Development of Economic Integration in the Central Yangtze River Megaregion from the Perspective of Urban Network Evolution," Sustainability, MDPI, vol. 11(19), pages 1-18, September.
    11. Viswanathan P K, 2008. "Critical Issues Facing China’s Rubber Industry in the Era of Market Integration: An Analysis in Retrospect and Prospect," Working Papers id:1362, eSocialSciences.
    12. Li, Yao, 2008. "Industrial Agglomeration and Wage Inequality in China," MPRA Paper 11426, University Library of Munich, Germany, revised Oct 2008.
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    14. Prud’homme, Dan, 2016. "Dynamics of China’s provincial-level specialization in strategic emerging industries," Research Policy, Elsevier, vol. 45(8), pages 1586-1603.
    15. P.K. Viswanathan, 2008. "Sustainable Growth of China's Rubber Industry in the Era of Global Economic Integration," China Report, , vol. 44(3), pages 251-279, July.

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