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Chinese manufacturing on the move: Factor supply or market access?

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  • Bao, Chengchao
  • Chen, Zhao
  • Wu, Jianfeng

Abstract

This paper examines recent trends in the location of manufacturing activities in China using a model that combines forces relating to Heckscher–Ohlin (H-O) and New Economic Geography (NEG). It is found that there are large intercity shifts in industrial employment since 1998 in China, with the overall redistribution being towards coastal cities. Our investigation of the determinants of locational change in Chinese industries suggests that market access based on NEG theories played a key role in industrial location especially in the post-WTO period, while there is evidence of H-O arguments associated with factor supply in previous years.

Suggested Citation

  • Bao, Chengchao & Chen, Zhao & Wu, Jianfeng, 2013. "Chinese manufacturing on the move: Factor supply or market access?," China Economic Review, Elsevier, vol. 26(C), pages 170-181.
    • Handle: RePEc:eee:chieco:v:26:y:2013:i:c:p:170-181
    DOI: 10.1016/j.chieco.2012.08.005
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    Cited by:

    1. Zhikuo Liu & Huihang Wu & Jianfeng Wu, 2019. "Location-based tax incentives and entrepreneurial activities: evidence from Western Regional Development Strategy in China," Small Business Economics, Springer, vol. 52(3), pages 729-742, March.
    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. Umberto Monarca & Ernesto Cassetta & Michele Lo Re & Linda Meleo, 2019. "A Network Analysis of the Intersectoral Linkages Between Manufacturing and Other Industries in China and Italy," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 11(1-2), pages 80-97, January.
    4. Chun Yang & Canfei He, 2017. "Transformation of China's ‘World Factory’: Production Relocation and Export Evolution of the Electronics Firms," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 108(5), pages 571-591, October.

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    More about this item

    Keywords

    Locational change of industries; Factor supply; Market access;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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