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Industrial Agglomeration, Production Networks and FDI Promotion The Case Study of China


Author Info

  • Zhao Jianglin

    (Institute of Asia-Pacific Studies)

  • Zhou Xiaobing
  • Shen Minghui


Chinas Industrial clustering is a distinguished economic phenomenon over the last 20 years. It began to enter into its fast track in the mid-1990s and developed rapidly in recent years. Both market-driven force and government-driven force contribute to Chinese industrial clusters. The opening and stable macroeconomic policies create a favorable climate for the industrial clustering. Local government has made its contribution to construction on both hardware and software environments for industrial clusters. The major contribution of FDI to the local industrial clustering lies in helping integrating Chinese domestic industries into international division of labor and at the same time forging a relatively integrated production chain for Chinese domestic industries. At present, China has stepped into the new phase of industrial clusters upgrading. Chinese government is gradually improving the local software infrastructure for industry clustering.

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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Macroeconomics Working Papers with number 22852.

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Date of creation: Jan 2008
Date of revision:
Handle: RePEc:eab:macroe:22852

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Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
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Related research

Keywords: Industrial Agglomeration; China; Production Networks; FDI; foreign direct investment;

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