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Domestic Market-based Industrial Cluster Development in Modern China

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  • Ding, Ke

Abstract

China’s huge domestic market is constantly expanding, and is low-end demand oriented and highly dispersed. The domestic market-based development of China’s industrial cluster, however, is not only a quantitative expansion, but has also been accompanied with remarkable qualitative upgrading. Specialized markets are a microcosm that clearly indicate this paradoxical phenomenon. By analyzing three typical cases of industrial clusters that have specialized markets, this paper will make the case that under modern China’s market conditions, the local public sector is the crucial driving force for upgrading industrial clusters, which organize complicated transactions, promote quality control, and stimulate the division of labor.

Suggested Citation

  • Ding, Ke, 2007. "Domestic Market-based Industrial Cluster Development in Modern China," IDE Discussion Papers 88, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper88
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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=38078&item_no=1&attribute_id=22&file_no=1
    File Function: First version, 2007
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    Citations

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    Cited by:

    1. Bellandi, Marco & Lombardi, Silvia, 2012. "Specialized markets and Chinese industrial clusters: The experience of Zhejiang Province," China Economic Review, Elsevier, vol. 23(3), pages 626-638.
    2. Hinh T. Dinh, 2014. "Light Manufacturing in Vietnam : Creating Jobs and Prosperity in a Middle-Income Economy," World Bank Publications, The World Bank, number 16598.

    More about this item

    Keywords

    China; Industrial cluster; Market condition; Specialized market; Local public sector; Industrial estates; Local industy; Market; Public sector; 中国; 産業集積; 市場条件; 専業市場; 地方政府; 工業地帯; 地場産業; 市場; 公共部門;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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