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Relocation and Agglomeration of Chinese Industry

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  • Wen, Mei

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    Abstract

    This paper investigates spatial concentration of Chinese manufacturing using the data collected in both the second and third national industrial censuses. It is found that many of China's manufacturing industries were highly geographically concentrated in several coastal regions in 1995. A historical comparison of the concentration levels between 1980, 1985 and 1995, suggests that manufacturing industries have become more geographically concentrated following the economic reform. Results from production function estimation and further regressions suggest that the industrial agglomeration in China is driven by both transaction agglomeration and production agglomeration based on increasing returns to scale effect.

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    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2001/2001-07%20MeiWenWP2v.pdf
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    Bibliographic Info

    Paper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2001-07.

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    Length: 31 pages
    Date of creation: Aug 2001
    Date of revision:
    Handle: RePEc:pas:papers:2001-07

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    Related research

    Keywords: Industrial concentration; transportation cost; preferential development policies; the extent of the market; foreign investment; trade barriers.;

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    1. Amiti, Mary, 1998. "New Trade Theories and Industrial Location in the EU: A Survey of Evidence," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 45-53, Summer.
    2. repec:fth:iniesr:430 is not listed on IDEAS
    3. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
    4. Fujita, Masahisa & Krugman, Paul, 1995. "When is the economy monocentric?: von Thunen and Chamberlin unified," Regional Science and Urban Economics, Elsevier, vol. 25(4), pages 505-528, August.
    5. Tabuchi, Takatoshi & Yoshida, Atsushi, 2000. "Separating Urban Agglomeration Economies in Consumption and Production," Journal of Urban Economics, Elsevier, vol. 48(1), pages 70-84, July.
    6. Diego Puga & Anthony J. Venables, 1996. "The spread of industry: spatial agglomeration in economic development," LSE Research Online Documents on Economics 20683, London School of Economics and Political Science, LSE Library.
    7. Krugman, Paul & Venables, Anthony J., 1995. "Globalization and the Inequality of Nations," Working Paper Series 430, Research Institute of Industrial Economics.
    8. Jian, Tianlun & Sachs, Jeffrey D. & Warner, Andrew M., 1996. "Trends in regional inequality in China," China Economic Review, Elsevier, vol. 7(1), pages 1-21.
    9. Tianlun Jian & Jeffrey D. Sachs & Andrew M. Warner, 1996. "Trends in Regional Inequality in China," NBER Working Papers 5412, National Bureau of Economic Research, Inc.
    10. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, December.
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