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Spillovers across industries and regions in China’s regional economic diversification

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Listed:
  • Jian Gao
  • Bogang Jun
  • Alex ‘Sandy’ Pentland
  • Tao Zhou
  • César A. Hidalgo

Abstract

Industrial diversification depends on spillovers from related industries and nearby regions, yet their interaction remains largely unclear. We study economic diversification in China during the period 1990–2015 and present supportive evidence on both spillover channels. We add to the literature by showing that these two channels behave as substitutes when explaining new entries and exits, and by using acceleration campaigns of high-speed rail to address some endogeneity concerns with regional spillovers. Our findings confirm the role of relatedness and geographical distance in the diffusion of economic capabilities and support the idea that improvements in transportation can facilitate the diffusion of productive capabilities.

Suggested Citation

  • Jian Gao & Bogang Jun & Alex ‘Sandy’ Pentland & Tao Zhou & César A. Hidalgo, 2021. "Spillovers across industries and regions in China’s regional economic diversification," Regional Studies, Taylor & Francis Journals, vol. 55(7), pages 1311-1326, July.
  • Handle: RePEc:taf:regstd:v:55:y:2021:i:7:p:1311-1326
    DOI: 10.1080/00343404.2021.1883191
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    Citations

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    Cited by:

    1. Jin, Wenwan & Zhu, Shengjun, 2023. "High-speed rail network and regional convergence/divergence in industrial structure," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    2. Seung Hwan Kim & Jeong hwan Jeon & Anwar Aridi & Bogang Jun, 2022. "Factors that affect the technological transition of firms toward the industry 4.0 technologies," Papers 2209.02239, arXiv.org.
    3. Chen, Zhenhua, 2023. "Socioeconomic Impacts of high-speed rail: A bibliometric analysis," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    4. Ghosh, Abhik & Mallick, Olivia & Chattopadhay, Souvik & Basu, Banasri, 2022. "Strata-based quantification of distributional uncertainty in socio-economic indicators: A comparative study of Indian states," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    5. Xiaojing Li & Jing Chen, 2023. "Global or Local Spatial Spillovers? Industrial Diversity and Economic Resilience in the Middle Reaches of the Yangtze River Urban Agglomeration, China," Sustainability, MDPI, vol. 15(14), pages 1-17, July.
    6. C'esar A. Hidalgo, 2022. "Knowledge is non-fungible," Papers 2205.02167, arXiv.org.
    7. Hidalgo, César A., 2023. "The policy implications of economic complexity," Research Policy, Elsevier, vol. 52(9).
    8. Khwaja Naveed & Fahad Khalid & Cosmina L. Voinea & Nadine Roijakkers & Cosmin Fratostiteanu, 2023. "Board gender diversity and corporate environmental commitment: A subnational perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4970-4990, November.
    9. Wang, Feng & Wu, Min & Wang, Jingcao, 2023. "Can increasing economic complexity improve China's green development efficiency?," Energy Economics, Elsevier, vol. 117(C).
    10. Christophe LEVEQUE & Haris MEGZARI, 2022. "Intensification or Diversification: Responses by Anti Health-Pass Entrepreneurs to French Government Announcements," Bordeaux Economics Working Papers 2022-04, Bordeaux School of Economics (BSE).

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