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

  • Long, Cheryl
  • Zhang, Xiaobo

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.

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Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 23 (2012)
Issue (Month): 3 ()
Pages: 593-612

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Handle: RePEc:eee:chieco:v:23:y:2012:i:3:p:593-612
Contact details of provider: Web page: http://www.elsevier.com/locate/chieco

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  1. Antonio Ciccone & Elias Papaioannou, 2009. "Human Capital, the Structure of Production, and Growth," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 66-82, February.
  2. Lu, Jiangyong & Tao, Zhigang, 2007. "Trends and Determinants of China’s Industrial Agglomeration," MPRA Paper 6597, University Library of Munich, Germany.
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  15. 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, 02.
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