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Evolution of Export Product Space in China: Technological Relatedness, National/Local Governance and Regional Industrial Diversification

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  • Canfei He
  • Shengjun Zhu

Abstract

Regions tend to develop new products that are related to pre‐existing industrial structure. This stresses the critical role of relatedness in regional industrial diversification. Governments can also strongly affect the evolution of regional industrial structure by using a variety of industrial policies. Based on China's custom product level data, this study explores the evolution of China's export product space during 2000–2011. Econometric analyses suggest that the evolution of export product space in China is heavily driven by relatedness between export products, indicating that regional industrial diversification is path‐dependent. Chinese national and local governments can exert significant influence on the evolution of export products by using export and FDI‐related policies and by establishing development zones. More importantly, national and local governments have played conflicting roles in China's regional industrial dynamics.

Suggested Citation

  • Canfei He & Shengjun Zhu, 2018. "Evolution of Export Product Space in China: Technological Relatedness, National/Local Governance and Regional Industrial Diversification," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 109(4), pages 575-593, September.
    • Handle: RePEc:bla:tvecsg:v:109:y:2018:i:4:p:575-593
    DOI: 10.1111/tesg.12309
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    Cited by:

    1. Kroll Henning & Neuhäusler Peter, 2020. "Recent Trends of Regional Development in China – Technological Portfolios and Economic Growth," ZFW – Advances in Economic Geography, De Gruyter, vol. 64(1), pages 14-27, March.
    2. Tengfei Wang & Henrik Halkier & Laura James & Renxu Gu & Cheng Chi, 2022. "External Knowledge Linkages and the Evolution of Comparative Advantage: An Examination of Territorial Knowledge Dynamics in China," Sustainability, MDPI, vol. 14(8), pages 1-14, April.
    3. Carla Carolina Pérez-Hernández & Blanca Cecilia Salazar-Hernández & Jessica Mendoza-Moheno & Erika Cruz-Coria & Martín Aubert Hernández-Calzada, 2021. "Mapping the Green Product-Space in Mexico: From Capabilities to Green Opportunities," Sustainability, MDPI, vol. 13(2), pages 1-25, January.

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