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Impact of market access and comparative advantage on regional distribution of manufacturing sector

Author

Listed:
  • Muhammad Imran

    (Nankai University)

  • Gu Zhang

    (Lanzhou University)

  • HuSen An

    (Nankai University)

Abstract

Background This paper discuss the effects of trade costs and comparative technology on industry location for the economy of China. Methods The model assumes differences in comparative technology and different intraregional and interregional trade costs, and argues how different factors influence the location of industrial value added. Results By processing the designed model, equations were set up to check whether the conclusions from our mathematical model are credible under panel data at the provincial level of China from 1995 to 2014. We found that the location of industrial value added in a region strongly related to infrastructure and local market size. Conclusions Geographical location of a region is an important factor for deciding which factor should be handled first (either intraregional or interregional).

Suggested Citation

  • Muhammad Imran & Gu Zhang & HuSen An, 2017. "Impact of market access and comparative advantage on regional distribution of manufacturing sector," China Finance and Economic Review, Springer, vol. 5(1), pages 1-14, December.
  • Handle: RePEc:spr:chfecr:v:5:y:2017:i:1:d:10.1186_s40589-017-0047-1
    DOI: 10.1186/s40589-017-0047-1
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    Cited by:

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    More about this item

    Keywords

    New economic geography; Comparative advantage; Market access;
    All these keywords.

    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)
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

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