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City–industry growth in China

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  • Lu, Yi
  • Ni, Juan
  • Tao, Zhigang
  • Yu, Linhui

Abstract

This paper investigates the relevance of two leading theories of city–industry growth (i.e., specialization and diversity theories) in accounting for the fast yet uneven growth of industries in China's cities. Using a comprehensive dataset of manufacturing industries in 231 China's cities for the period 1998–2005, we find that specialization promotes city–industry growth, whereas diversity has no effect at all. In addition, we find that specialization is important for the growth of mature industries in China, but diversity is crucial for the development of China's relatively new and fast-growing industries. Our study contributes to the literature by examining the relevance of the specialization and diversity theories for a large and fast-growing developing economy.

Suggested Citation

  • Lu, Yi & Ni, Juan & Tao, Zhigang & Yu, Linhui, 2013. "City–industry growth in China," China Economic Review, Elsevier, vol. 27(C), pages 135-147.
    • Handle: RePEc:eee:chieco:v:27:y:2013:i:c:p:135-147
    DOI: 10.1016/j.chieco.2013.08.004
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    Cited by:

    1. ZHANG, Hongyong, 2015. "How does agglomeration promote the product innovation of Chinese firms?," China Economic Review, Elsevier, vol. 35(C), pages 105-120.
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    3. Dmitriy Izotov, 2017. "Urban Economic Growth in the Chinese Heterogeneity Space," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 789-802.

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    More about this item

    Keywords

    City–industry growth in China; Specialization; Diversity;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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