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Industry Characteristics, Spatial Competition and Industrial Concentration - Evidence from China

Author

Listed:
  • Wang, Yeqiang

    (Institute of Industrial Economics, Chinese Academy of Social Sciences)

  • Wei, Houkai

    (Institute of Industrial Economics, Chinese Academy of Social Sciences)

Abstract

We study the determinants of geographic concentration of manufacturing industries in a spatial competition framework. Based on a panel database of China during 1995~2003, we have the following findings. Firstly, some traditional comparative advantages in production factors such as labor endowment are becoming the factors that prevent the industrial concentration. Secondly, the major factors that promote geographic manufacturing concentration are technology spillover and industry linkage. Thirdly, the effect of scale economy on manufacturing concentration is significant, but the direction depends on how the concentration is measured.

Suggested Citation

  • Wang, Yeqiang & Wei, Houkai, 2008. "Industry Characteristics, Spatial Competition and Industrial Concentration - Evidence from China," Revista de Economie Industriala (Journal of Industrial Eonomics), Centre for Industrial Economics and Services, vol. 6(1), pages 20-35, March.
  • Handle: RePEc:cei:recind:v:6:y:2008:i:1:p:20-35
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    More about this item

    Keywords

    Industry Characteristics; Spatial Competition; Geographic Concentration;

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • 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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