[Firm Concentration, Technology Promotion and Economic Performance: An Empirical Study on the Nature and Dynamics of Industrial Clusters in China’s Development Zones along the Down Reaches of Yangtze River]
AbstractBased on micro-firm data of development zones in Jiangsu Province along the Yangtze River, the effects of local factors special to development zones and of technology promotion on firm’s performance are tested, from which we try to illustrate the nature and dynamics of industrial clusters built on development zones. The results show that the primary reasons firms locate into development zones are not clustering benefits in general meaning brought by interactions among firms locally concentrated, but are the attraction of “policy rents” and the scale economy of infrastructure brought by government behaviors. Once located in the zone, the firm is doom to interact with local government as well as industry-related factors, and the clustering effects may emerge. Thus, the key to keep development zones’ competition sustainable, when governments’ bidding wars and policy adjustment fade away “policy rents” and scale economy of infrastructure, is to cultivate clustering effects.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 8917.
Date of creation: Feb 2008
Date of revision:
Development Zones along Yangtze River; Firms’ Spatial Concentration; Industrial Clustering Effects; Technology Promotion; Policy Rents;
Find related papers by JEL classification:
- R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - General
- R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-06-07 (All new papers)
- NEP-CNA-2008-06-07 (China)
- NEP-GEO-2008-06-07 (Economic Geography)
- NEP-KNM-2008-06-07 (Knowledge Management & Knowledge Economy)
- NEP-TID-2008-06-07 (Technology & Industrial Dynamics)
- NEP-TRA-2008-06-07 (Transition Economics)
- NEP-URE-2008-06-07 (Urban & Real Estate Economics)
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