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

Listed author(s):
  • Wang, Yeqiang

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

  • Wei, Houkai

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

Registered author(s):

    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.

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    Article provided by Centre for Industrial Economics and Services in its journal Revista de Economie Industriala (Journal of Industrial Eonomics).

    Volume (Year): 6 (2008)
    Issue (Month): 1 (March)
    Pages: 20-35

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    Handle: RePEc:cei:recind:v:6:y:2008:i:1:p:20-35
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