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Dynamic externalities and local growth: A panel data analysis applied to Chinese provinces

  • Batisse, Cecile

This paper provides empirical evidence on the relation between industrial structure and growth performance in Chinese provinces. The influence of two types of variables is examined along with traditional production factors: industrial structure (degree of concentration, diversity in the industrial environment and market structure) and regional growth factors (level of initial development, geographic localization). Using panel data from a sample covering 30 industrial sectors for 29 Chinese provinces (excluding Tibet) over the 1988 to 1994 period, the econometric analysis shows first that if the industrial structure has some influence on local growth, much of the effect is region-specific. Second, it appears that sectors located in coastal provinces and those located in interior provinces have been subject to different growth impulses. Namely, it seems that interior provinces have not succeeded in benefiting from new opportunities given by market mechanisms during the studied period.

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Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 13 (2002)
Issue (Month): 2-3 ()
Pages: 231-251

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Handle: RePEc:eee:chieco:v:13:y:2002:i:2-3:p:231-251
Contact details of provider: Web page: http://www.elsevier.com/locate/chieco

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  1. Martin Raiser, 1998. "Subsidising inequality: Economic reforms, fiscal transfers and convergence across Chinese provinces," Journal of Development Studies, Taylor & Francis Journals, vol. 34(3), pages 1-26.
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  11. Demurger, Sylvie, 2001. "Infrastructure Development and Economic Growth: An Explanation for Regional Disparities in China?," Journal of Comparative Economics, Elsevier, vol. 29(1), pages 95-117, March.
  12. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 18-29, Summer.
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