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Information and communication technologies and geographic concentration of manufacturing industries: evidence from China

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  • Fu, Shihe
  • Hong, Junjie
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Abstract

Using the 2004 China economic census database, this paper examines the impact of information and communication technologies (ICT) on the geographic concentration of manufacturing industries, controlling for other determinants of industrial agglomeration. Higher geographic concentration is found consistently in industries where ICT are more widely adopted, and the association is stronger at higher geographic levels. Furthermore, young firms that have adopted ICT, although they are more footloose, contribute to industrial agglomeration. High-tech industries with advanced ICT also tend to agglomerate. Contrary to the prevalent argument that ICT lead to more dispersion, our study suggests that ICT promote industrial agglomeration.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 7446.

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Date of creation: 01 Mar 2008
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Handle: RePEc:pra:mprapa:7446

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Keywords: Information and communication technologies; Geographic concentration; Agglomeration; China;

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