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The impact of economic policy on industrial specialization and regional concentration of China’s high-tech industries

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  • Dan Zheng
  • Tatsuaki Kuroda

Abstract

This paper uses a dynamic panel approach to investigate the impact of economic policy on industrial specialization and regional concentration of China’s high-tech industries for the period 1996–2005. It is found that the degrees of specialization and concentration show increasing trends throughout the sample period, while high-tech industry sector has increasingly concentrated in costal regions. It is also found that the implementation of high-technology-oriented export policy and subsidy for science and high-technology activities encourage specialization and concentration, whereas local governments’ protection for local high-tech enterprises results in convergence in regional industrial structure and obstructs regional concentration of high-tech industries. The estimation result is robust not only to the use of various estimation techniques, but also to the control for other factors proposed by theories such as transport costs and knowledge resources. Our findings support the idea that economic policies might play an important role in determining the geographic distribution of high-tech industries in China. Copyright Springer-Verlag 2013

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  • Dan Zheng & Tatsuaki Kuroda, 2013. "The impact of economic policy on industrial specialization and regional concentration of China’s high-tech industries," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(3), pages 771-790, June.
    • Handle: RePEc:spr:anresc:v:50:y:2013:i:3:p:771-790
    DOI: 10.1007/s00168-012-0522-4
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    2. Qiang Li & Jason F. Kovacs & Geun Hee Choi, 2021. "High-technology employment growth in China: geographic disparities in economic structure and sectoral performance," Economic Change and Restructuring, Springer, vol. 54(4), pages 1025-1064, November.
    3. Yan Yu & Xinxin Gao & Wenqing Meng & Yujia He & Chenhe Zhang, 2022. "Industrial Structure Optimization of Wuhan Urban Agglomeration Based on TFP and Industrial Spatial Linkages," Land, MDPI, vol. 11(10), pages 1-13, September.
    4. Honggang Qi & Shenghe Liu & Wei Qi & Zhen Liu, 2019. "Geographical Concentration of Knowledge- and Technology-Intensive Industries and City Innovation in China," Sustainability, MDPI, vol. 11(18), pages 1-20, September.
    5. Shuju Hu & Wei Song & Chenggu Li & Charlie H. Zhang, 2019. "The Evolution of Industrial Agglomerations and Specialization in the Yangtze River Delta from 1990–2018: An Analysis Based on Firm-Level Big Data," Sustainability, MDPI, vol. 11(20), pages 1-21, October.
    6. Jianing Xu & Weidong Li, 2023. "High-Speed Rail and Industrial Agglomeration: Evidence from China’s Urban Agglomerations," Land, MDPI, vol. 12(8), pages 1-18, August.
    7. Jiawei Wu & Yehua Dennis Wei & Qizhai Li & Feng Yuan, 2018. "Economic Transition and Changing Location of Manufacturing Industry in China: A Study of the Yangtze River Delta," Sustainability, MDPI, vol. 10(8), pages 1-28, July.

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    More about this item

    Keywords

    R12; O25;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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