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The Dynamics of Economic Policy and Regional Specialization: Evidence from China¡¯s High-tech Industry

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  • Dan Zheng

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    Abstract: This paper investigates the effects of economic policy on regional specialization of China¡¯s high-tech industries for the period 1996 to 2005. Results indicate that the average level of regional specialization increases over years. Moreover, high-tech industry sector is highly localized in coastal regions. Using a dynamic panel data approach, we find that the implementation of high technology oriented export policy and subsidies for science and high technology activities encourage regional specialization, whereas local government¡¯s protections for local high-tech enterprises impede it. The empirical study also confirms the important role of high-skilled labor in determining regional specialization. Keywords: economic policy; specialization; high-tech industry; dynamics

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    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p1086.

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    Date of creation: Sep 2011
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    Handle: RePEc:wiw:wiwrsa:ersa11p1086

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