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

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  • Hong, Junjie
  • Fu, Shihe

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.

Suggested Citation

  • Hong, Junjie & Fu, Shihe, 2008. "Information and communication technologies and geographic concentration of manufacturing industries: Evidence from China," MPRA Paper 7574, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:7574
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    2. Meijuan Wang & Mingzhi Zhang & Haiqian Chen & Donghua Yu, 2023. "How Does Digital Economy Promote the Geographical Agglomeration of Manufacturing Industry?," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    3. Tinglin Zhang & Bindong Sun & Wan Li & Huimin Zhou, 2022. "Information communication technology and manufacturing decentralisation in China," Papers in Regional Science, Wiley Blackwell, vol. 101(3), pages 619-637, June.
    4. Honggang Qi & Shenghe Liu & Wei Qi & Zhen Liu, 2019. "Geographical Concentration of Knowledge- and Technology-Intensive Industries and City Innovation in China," Sustainability, MDPI, vol. 11(18), pages 1-20, September.
    5. Theodore Tsekeris & Klimis Vogiatzoglou, 2014. "Public infrastructure investments and regional specialization: empirical evidence from Greece," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(3), pages 265-289, August.
    6. Yanlin Sun & Shaoxiong Ma & Hao Feng, 2023. "The New Geography of Manufacturing in China: The Internet and Manufacturing Agglomeration," Sustainability, MDPI, vol. 15(17), pages 1-21, August.
    7. Xiuxiu Jiang & Xia Wang & Jia Ren & Zhimin Xie, 2023. "Digital economy, agglomeration, and entrepreneurship in Chinese cities," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 359-370, January.
    8. Xian Zhao & Yiting Dong & Xinshu Gong, 2022. "The Digital Economy and Carbon Productivity: Evidence at China’s City Level," Sustainability, MDPI, vol. 14(17), pages 1-20, August.

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    More about this item

    Keywords

    Information and communication technologies; Geographic concentration; Agglomeration;
    All these keywords.

    JEL classification:

    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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