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Trends and Determinants of China’s Industrial Agglomeration

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Author Info
Lu, Jiangyong
Tao, Zhigang

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Abstract

This paper investigates trends and determinants of the spatial concentration of China’s manufacturing industries using a large firm-level data for the time period of 1998 to 2005. It is found that the overall industrial agglomeration in China has increased steadily in recent years though it is still much lower than those of the well-developed market economies (such as United States, United Kingdom, and France). It is also found that local protectionism among China’s various regions obstructs China’s industrial agglomeration while Marshallian externalities facilitate the process of spatial concentration of manufacturing industries. On an optimistic note, there is evidence that the negative impacts of local protectionism have become less significant over time but those of Marshallian externalities are gaining in importance, which is consistent with the overall trend of China’s industrial agglomeration.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6597.

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Date of creation: Nov 2007
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Handle: RePEc:pra:mprapa:6597

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R1 - Urban, Rural, and Regional Economics - - General Regional Economics

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  4. Bai, Chong-En & Du, Yingjuan & Tao, Zhigang & Tong, Sarah Y., 2004. "Local protectionism and regional specialization: evidence from China's industries," Journal of International Economics, Elsevier, vol. 63(2), pages 397-417, July. [Downloadable!] (restricted)
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  5. Guy Dumais & Glenn Ellison & Edward Glaeser, 1997. "Geographic Concentration as a Dynamic Process," NBER Working Papers 6270, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Thomas J. Holmes, 1999. "Localization Of Industry And Vertical Disintegration," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 314-325, May. [Downloadable!] (restricted)
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  7. Poncet, Sandra, 2003. "Measuring Chinese domestic and international integration," China Economic Review, Elsevier, vol. 14(1), pages 1-21. [Downloadable!] (restricted)
  8. Shleifer, Andrei & Vishny, Robert W, 1994. "Politicians and Firms," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 995-1025, November. [Downloadable!] (restricted)
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  10. Björn Alecke & Christoph Alsleben & Frank Scharr & Gerhard Untiedt, 2006. "Are there really high-tech clusters? The geographic concentration of German manufacturing industries and its determinants," The Annals of Regional Science, Springer, vol. 40(1), pages 19-42, March. [Downloadable!] (restricted)
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