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Openness, industrialization, and geographic concentration of activities in China

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  • Catin, Maurice
  • Luo, Xubei
  • Van Huffel, Christophe

Abstract

Rapid development, a widening regional gap, and growing concentration of activities have characterized the Chinese economy since the reforms in the late 1970s. This paper examines the spatial disparities of the economic concentration in different stages of development from a geographic approach in the case of China. It aims at offering empirical supports on (1) how concentrated the economic activities are; (2) what factors determine the economic concentration; and (3) whether this concentration differs in the coastal and inland regions. The results show that the high-technology industries highly concentrate in the coastal provinces. The limited diffusion of the labor intensive activities within the coastal region does not significantly modify the major trend of the location and specialization of the industries in the inland region, and does not contribute to narrowing the regional disparities. The paper argues that in order to stimulate the geographic diffusion of economic activities to the inland region, it is important to appropriately alleviate internal migration control, reduce unnecessary state intervention, and further encourage domestic market integration.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3706.

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Date of creation: 01 Sep 2005
Date of revision:
Handle: RePEc:wbk:wbrwps:3706

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Keywords: Economic Theory&Research; Industrial Management; Water and Industry; General Manufacturing; Environmental Economics&Policies;

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References

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Citations

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Cited by:
  1. Li, Yao, 2008. "Industrial Agglomeration and Wage Inequality in China," MPRA Paper 11426, University Library of Munich, Germany, revised Oct 2008.
  2. Bao, Chengchao & Chen, Zhao & Wu, Jianfeng, 2013. "Chinese manufacturing on the move: Factor supply or market access?," China Economic Review, Elsevier, vol. 26(C), pages 170-181.
  3. Céline BONNEFOND, 2013. "Growth dynamics and conditional convergence among Chinese provinces: a panel data investigation using system GMM estimator," Cahiers du GREThA 2013-23, Groupe de Recherche en Economie Théorique et Appliquée.
  4. McCulloch, Neil & Sjahrir, Bambang Suharnoko, 2008. "Endowments, location or luck ? evaluating the determinants of sub-national growth in decentralized Indonesia," Policy Research Working Paper Series 4769, The World Bank.
  5. Dan Zheng & Tatsuaki Kuroda, 2013. "The impact of economic policy on industrial specialization and regional concentration of China’s high-tech industries," The Annals of Regional Science, Springer, vol. 50(3), pages 771-790, June.
  6. Alexandra SCHAFFAR, 2008. "Regional Income Inequality And Urbanisation Trends In China: 1978-2005," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 87-110.
  7. Dan Zheng, 2011. "The Dynamics of Economic Policy and Regional Specialization: Evidence from China¡¯s High-tech Industry," ERSA conference papers ersa11p1086, European Regional Science Association.
  8. Maurice CATIN & Christophe VAN HUFFEL, 2008. "Clusters Et Stratégies De Développement En Chine," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 39-60.

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