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Dynamic externalities and local growth:A panel data analysis applied to Chinese provinces

  • Cécile BATISSE

    ()

    (Centre d'Etudes et de Recherches sur le Développement International)

This paper provides empirical evidence on the relation between industrial structure and growth performance in Chinese provinces. The influence of two types of variables is examined along with traditional production factors: industrial structure (degree of concentration, diversity in the industrial environment and market structure) and regional growth factors (level of initial development, geographic localization). Using panel data from a sample covering 30 industrial sectors for 29 Chinese provinces (excluding Tibet) over the 1988 to 1994 period, the econometric analysis shows first that if the industrial structure has some influence on local growth, much of the effect is region-specific. Second, it appears that sectors located in coastal provinces and those located in interior provinces have been subject to different growth impulses. Namely, it seems that interior provinces have not succeeded in benefiting from new opportunities given by market mechanisms during the studied period.

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Paper provided by CERDI in its series Working Papers with number 200112.

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Length: 32
Date of creation: 2001
Date of revision:
Publication status: Published in China Economic Review, 2002, pages 231-251
Handle: RePEc:cdi:wpaper:160
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  1. Jian, Tianlun & Sachs, Jeffrey D. & Warner, Andrew M., 1996. "Trends in regional inequality in China," China Economic Review, Elsevier, vol. 7(1), pages 1-21.
  2. Laffont, Jean-Jacques & Qian, Yingyi, 1999. "The dynamics of reform and development in China: A political economy perspective," European Economic Review, Elsevier, vol. 43(4-6), pages 1105-1114, April.
  3. J. Vernon Henderson & Ari Kuncoro & Matthew Turner, 1992. "Industrial Development in Cities," NBER Working Papers 4178, National Bureau of Economic Research, Inc.
  4. Mody, Ashoka & Wang, Fang-Yi, 1997. "Explaining Industrial Growth in Coastal China: Economic Reforms . . . and What Else?," World Bank Economic Review, World Bank Group, vol. 11(2), pages 293-325, May.
  5. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
  6. Giulio Cainelli & Riccardo Leoncini, 1999. "Externalities and long-term local industrial development. Some empirical evidence from Italy," Revue d'Économie Industrielle, Programme National Persée, vol. 90(1), pages 25-39.
  7. Tianlun Jian & Jeffrey D. Sachs & Andrew M. Warner, 1996. "Trends in Regional Inequality in China," NBER Working Papers 5412, National Bureau of Economic Research, Inc.
  8. Jean-François BRUN & Mary-Françoise RENARD, 1999. "Commerce extérieur et spécialisations régionales en Chine," Working Papers 199917, CERDI.
  9. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," CEPR Discussion Papers 1974, C.E.P.R. Discussion Papers.
  10. Henderson, Vernon & Lee, Todd & Lee, Yung Joon, 2001. "Scale Externalities in Korea," Journal of Urban Economics, Elsevier, vol. 49(3), pages 479-504, May.
  11. Martin Raiser, 1998. "Subsidising inequality: Economic reforms, fiscal transfers and convergence across Chinese provinces," Journal of Development Studies, Taylor & Francis Journals, vol. 34(3), pages 1-26.
  12. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-52, December.
    • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
  13. Demurger, Sylvie, 2001. "Infrastructure Development and Economic Growth: An Explanation for Regional Disparities in China?," Journal of Comparative Economics, Elsevier, vol. 29(1), pages 95-117, March.
  14. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  15. Kanbur, Ravi & Zhang, Xiaobo, 1999. "Which Regional Inequality? The Evolution of Rural-Urban and Inland-Coastal Inequality in China from 1983 to 1995," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 686-701, December.
  16. Song, Shunfeng & Chu, George S. -F. & Chao, Rongqing, 2000. "Intercity regional disparity in China," China Economic Review, Elsevier, vol. 11(3), pages 246-261.
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