IDEAS home Printed from https://ideas.repec.org/a/eee/chieco/v23y2012i3p593-612.html
   My bibliography  Save this article

Patterns of China's industrialization: Concentration, specialization, and clustering

Author

Listed:
  • Long, Cheryl
  • Zhang, Xiaobo

Abstract

This paper presents a few stylized facts on the patterns of China's industrialization by computing a set of multi-dimensional measures on industrial concentration, regional specialization, and clustering based on census data at the firm level in 1995 and 2004. Our results show that China's rapid industrialization is characterized by the following patterns: industries have become more spatially concentrated; regions have become increasingly specialized; and firms have become more interconnected, both within industries and within regions. In addition, the number of firms is growing faster in clustered areas than non-clustered ones. Together these patterns suggest that China's industrialization process is largely cluster-based—a phenomenon in which a large number of highly interconnected firms are located within a well-defined geographic region.

Suggested Citation

  • Long, Cheryl & Zhang, Xiaobo, 2012. "Patterns of China's industrialization: Concentration, specialization, and clustering," China Economic Review, Elsevier, vol. 23(3), pages 593-612.
  • Handle: RePEc:eee:chieco:v:23:y:2012:i:3:p:593-612 DOI: 10.1016/j.chieco.2011.09.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1043951X11000903
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lu, Jiangyong & Tao, Zhigang, 2009. "Trends and determinants of China's industrial agglomeration," Journal of Urban Economics, Elsevier, vol. 65(2), pages 167-180, March.
    2. Tetsushi Sonobe & Keijiro Otsuka, 2006. "The Division of Labor and the Formation of Industrial Clusters in Taiwan," Review of Development Economics, Wiley Blackwell, vol. 10(1), pages 71-86, February.
    3. Masaki Nakabayashi, 2006. "Flexibility and diversity: the putting-out system in the silk fablic industry of Kiryu, Japan," Discussion Papers in Economics and Business 06-10, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    4. T. Sonobe & D. Hu & K. Otsuka, 2002. "Process of Cluster Formation in China: A Case Study of a Garment Town," Journal of Development Studies, Taylor & Francis Journals, vol. 39(1), pages 118-139.
    5. Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, , vol. 14(1), pages 15-34, February.
    6. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, January.
    7. Ricardo Hausmann & Bailey Klinger, 2007. "The Structure of the Product Space and the Evolution of Comparative Advantage," CID Working Papers 146, Center for International Development at Harvard University.
    8. Alwyn Young, 2000. "The Razor's Edge: Distortions and Incremental Reform in the People's Republic of China," NBER Working Papers 7828, National Bureau of Economic Research, Inc.
    9. Jikun Huang & Scott Rozelle & Min Chang, 2004. "Tracking Distortions in Agriculture: China and Its Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 59-84.
    10. Long, Cheryl & Zhang, Xiaobo, 2011. "Cluster-based industrialization in China: Financing and performance," Journal of International Economics, Elsevier, vol. 84(1), pages 112-123, May.
    11. Antonio Ciccone & Elias Papaioannou, 2009. "Human Capital, the Structure of Production, and Growth," The Review of Economics and Statistics, MIT Press, pages 66-82.
    12. Sonobe, Tetsushi & Hu, Dinghuan & Otsuka, Keijiro, 2004. "From inferior to superior products: an inquiry into the Wenzhou model of industrial development in China," Journal of Comparative Economics, Elsevier, vol. 32(3), pages 542-563, September.
    13. Jianqing Ruan & Xiaobo Zhang, 2009. "Finance and Cluster-Based Industrial Development in China," Economic Development and Cultural Change, University of Chicago Press, vol. 58(1), pages 143-164, October.
    14. Kong-Yam Tan, 2007. "Incremental Reform and Distortions in China's Product and Factor Markets," World Bank Economic Review, World Bank Group, vol. 21(2), pages 279-299, March.
    15. Wen, Mei, 2004. "Relocation and agglomeration of Chinese industry," Journal of Development Economics, Elsevier, vol. 73(1), pages 329-347, February.
    16. Huang, Zuhui & Zhang, Xiaobo & Zhu, Yunwei, 2008. "The role of clustering in rural industrialization: A case study of the footwear industry in Wenzhou," China Economic Review, Elsevier, vol. 19(3), pages 409-420, September.
    17. Bai, Chong-En & Du, Yingjuan & Tao, Zhigang & Tong, Sarah Y., 2004. "Local protectionism and regional specialization: evidence from China's industries," Journal of International Economics, Elsevier, vol. 63(2), pages 397-417, July.
    18. Alwyn Young, 2000. "The Razor's Edge: Distortions and Incremental Reform in the People's Republic of China," The Quarterly Journal of Economics, Oxford University Press, vol. 115(4), pages 1091-1135.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Xiaobo & Hu, Dinghuan, 2014. "Overcoming Successive Bottlenecks: The Evolution of a Potato Cluster in China," World Development, Elsevier, vol. 63(C), pages 102-112.
    2. Iris Claus & Les Oxley & Siqi Zheng & Cong Sun & Ye Qi & Matthew E. Kahn, 2014. "The Evolving Geography Of China'S Industrial Production: Implications For Pollution Dynamics And Urban Quality Of Life," Journal of Economic Surveys, Wiley Blackwell, vol. 28(4), pages 709-724, September.
    3. 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.
    4. repec:bla:rdevec:v:21:y:2017:i:4:p:1401-1424 is not listed on IDEAS
    5. Masaki Nakabayashi, 2017. "Honesty, Diligence and Skill: Risk Sharing and Specialization in the Kiryu Silk Weaving Cluster, Japan," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1401-1424, November.

    More about this item

    Keywords

    Industrial clustering; Agglomeration; Geographic concentration; Regional specialization; China;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:chieco:v:23:y:2012:i:3:p:593-612. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/chieco .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.