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

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  • Batisse, Cecile

Abstract

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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  • Batisse, Cecile, 2002. "Dynamic externalities and local growth: A panel data analysis applied to Chinese provinces," China Economic Review, Elsevier, vol. 13(2-3), pages 231-251.
  • Handle: RePEc:eee:chieco:v:13:y:2002:i:2-3:p:231-251
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    Cited by:

    1. Henri L.F. de Groot & Jacques Poot & Martijn J. Smit, 2007. "Agglomeration, Innovation and Regional Development: Theoretical Perspectives and Meta-Analysis," Tinbergen Institute Discussion Papers 07-079/3, Tinbergen Institute.
    2. Mohamed Amara, 2016. "The linkages between formal and informal employment growth in Tunisia: a spatial simultaneous equations approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 203-227, January.
    3. Yingxin Shi & Mototsugu Fukushige, 2015. "Long-Run Fiscal Multipliers for Autonomous Prefectures in China," Pacific Economic Review, Wiley Blackwell, vol. 20(5), pages 687-695, December.
    4. Christ, Julian P., 2009. "New Economic Geography reloaded: Localized knowledge spillovers and the geography of innovation," FZID Discussion Papers 01-2009, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    5. Jean-François Frun & Jean-Louis Combes & Mary-Françoise Renard, 2002. "Y-a-t-il une diffusion de la croissance entre les provinces chinoises ?," Revue d’économie du développement, De Boeck Université, vol. 10(3), pages 61-72.
    6. Khaled Thabet, 2015. "Industrial structure and total factor productivity: the Tunisian manufacturing sector between 1998 and 2004," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(2), pages 639-662, March.
    7. Mohamed Amara & Mohamed Ayadi, 2011. "Local Employment Growth in the Coastal Area of Tunisia: A Dynamic Spatial Panel Approach," Working Papers 650, Economic Research Forum, revised 12 Jan 2011.
    8. Xu ZHANG, 2013. "Firms’ Location Choices in Guangdong," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 3(11), pages 1414-1434, November.
    9. ZHAO Ting & ZHAO Wei, 2012. "Dynamic Externalities and Manufacturing Productivity: An empirical comparison among China's top three municipalities," Discussion papers 12072, Research Institute of Economy, Trade and Industry (RIETI).
    10. Isidro Soloaga & Mariana Pereira, 2013. "Determinants of Regional Growth by Manufacturing Sector in Mexico, 1988-2008," Working Papers 0713, Universidad Iberoamericana, Department of Economics.
    11. Shihe Fu & Junjie Hong, 2011. "Testing Urbanization Economies In Manufacturing Industries: Urban Diversity Or Urban Size?," Journal of Regional Science, Wiley Blackwell, vol. 51(3), pages 585-603, August.
    12. DRIDI, Manel, 2015. "Dynamic Externalities and Regional Development: The case of Tunisia," MPRA Paper 66988, University Library of Munich, Germany.
    13. Mohamed Ayadi & Wided Matoussi, 2014. "Working Paper - 213 - Disentangling the Pattern of Geographic Concentration in Tunisian Manufacturing Industries," Working Paper Series 2149, African Development Bank.
    14. Hu, Cui & Xu, Zhaoyuan & Yashiro, Naomitsu, 2015. "Agglomeration and productivity in China: Firm level evidence," China Economic Review, Elsevier, vol. 33(C), pages 50-66.
    15. Brun, J. F. & Combes, J. L. & Renard, M. F., 2002. "Are there spillover effects between coastal and noncoastal regions in China?," China Economic Review, Elsevier, vol. 13(2-3), pages 161-169.
    16. Qinghua Zhang & Heng-fu Zou, 2012. "Regional Inequality in Contemporary China," Annals of Economics and Finance, Society for AEF, vol. 13(1), pages 113-137, May.
    17. Mariana Pereira & Isidro Soloaga, 2012. "Determinantes del crecimiento regional por sector de la industria manufacturera en México, 1988-2008," Serie documentos de trabajo del Centro de Estudios Económicos 2012-05, El Colegio de México, Centro de Estudios Económicos.
    18. repec:blg:journl:v:12:y:2017:i:1:p:185-201 is not listed on IDEAS
    19. Li, Xibao, 2015. "Specialization, institutions and innovation within China's regional innovation systems," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 130-139.
    20. Xiaolei Qian & Russell Smyth, 2006. "Growth Accounting for the Chinese Provinces 1990-2000: Incorporating Human Capital Accumulation," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 4(1), pages 21-37.
    21. Pei Li, 2008. "Metropolitan economic growth and spatial dependence: Evidence from a panel of China," Psychometrika, Springer;The Psychometric Society, vol. 3(2), pages 277-295, June.
    22. Geomina Turlea & Cezar Mereuta, 2002. "Markets and networks in Romania - life after disorganisation," UCL SSEES Economics and Business working paper series 15, UCL School of Slavonic and East European Studies (SSEES).
    23. Ayadi, Mohamed & Mattoussi, Wided, 2014. "Disentangling the pattern of geographic concentration in Tunisian manufacturing industries," WIDER Working Paper Series 072, World Institute for Development Economic Research (UNU-WIDER).

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