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Openness, industrialization and geographic concentration of activities in China

Author

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  • Maurice Catin

    (LEAD - Laboratoire d'Économie Appliquée au Développement - UTLN - Université de Toulon)

  • Xubei Luo
  • Christophe van Huffel

Abstract

Rapid development, a widening regional gap, and growing concentration of activities have characterized the Chinese economy since the reforms in the late 1970s. This paper examines the spatial disparities of the economic concentration in different stages of development from a geographic approach in the case of China. It aims at offering empirical supports on (1) how concentrated the economic activities are; (2) what factors determine the economic concentration; and (3) whether this concentration differs in the coastal and inland regions. The results show that the high-technology industries highly concentrate in the coastal provinces. The limited diffusion of the labor intensive activities within the coastal region does not significantly modify the major trend of the location and specialization of the industries in the inland region, and does not contribute to narrowing the regional disparities. The paper argues that in order to stimulate the geographic diffusion of economic activities to the inland region, it is important to appropriately alleviate internal migration control, reduce unnecessary state intervention, and further encourage domestic market integration.
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  • Maurice Catin & Xubei Luo & Christophe van Huffel, 2005. "Openness, industrialization and geographic concentration of activities in China," Post-Print hal-01295839, HAL.
    • Handle: RePEc:hal:journl:hal-01295839
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    Cited by:

    1. 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.
    2. Hidetoshi Nishimura & Fukunari Kimura & Masahito Ambashi & Souknilanh Keola, . "Lao PDR at the Crossroads: Industrial Development Strategies 2016–2030," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2015-rpr-02 edited by Hidetoshi Nishimura & Fukunari Kimura & Masahito Ambashi & Souknilanh Keola, July.
    3. Alexandra SCHAFFAR, 2008. "Regional Income Inequality And Urbanisation Trends In China: 1978-2005," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 87-110.
    4. Stephen Sheppard & Dan Zhao, 2016. "Regional Concentration of Industry in China: Decentralised Choices or a Central Plan?," Department of Economics Working Papers 2016-17, Department of Economics, Williams College.
    5. Maurice CATIN & Christophe VAN HUFFEL, 2008. "CLUSTERS ET STRATeGIES DE DeVELOPPEMENT EN CHINE," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 39-60.
    6. 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.
    7. Du, Julan & He, Qing & Zhang, Ce, 2022. "Risk sharing and industrial specialization in China," Journal of Comparative Economics, Elsevier, vol. 50(2), pages 599-626.
    8. Canfei He & Yehua Dennis Wei & Xiuzhen Xie, 2008. "Globalization, Institutional Change, and Industrial Location: Economic Transition and Industrial Concentration in China," Regional Studies, Taylor & Francis Journals, vol. 42(7), pages 923-945.
    9. Celine Bonnefond, 2014. "Growth Dynamics And Conditional Convergence Among Chinese Provinces: A Panel Data Investigation Using System Gmm Estimator," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(4), pages 1-25, December.
    10. 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.
    11. James R. Barth & Gerard Caprio Jr., 2007. "China's Changing Financial System: Can It Catch Up With, or Even Drive Growth," NFI Policy Briefs 2007-PB-05, Indiana State University, Scott College of Business, Networks Financial Institute.
    12. McCulloch, Neil & Sjahrir, Bambang Suharnoko, 2008. "Endowments, location or luck ? evaluating the determinants of sub-national growth in decentralized Indonesia," Policy Research Working Paper Series 4769, The World Bank.
    13. Li, Yao, 2008. "Industrial Agglomeration and Wage Inequality in China," MPRA Paper 11426, University Library of Munich, Germany, revised Oct 2008.
    14. Dan Zheng, 2011. "The Dynamics of Economic Policy and Regional Specialization: Evidence from China's High-tech Industry," ERSA conference papers ersa11p1086, European Regional Science Association.

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