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Relocation and Agglomeration of Chinese Industry


  • Wen, Mei



This paper investigates spatial concentration of Chinese manufacturing using the data collected in both the second and third national industrial censuses. It is found that many of China's manufacturing industries were highly geographically concentrated in several coastal regions in 1995. A historical comparison of the concentration levels between 1980, 1985 and 1995, suggests that manufacturing industries have become more geographically concentrated following the economic reform. Results from production function estimation and further regressions suggest that the industrial agglomeration in China is driven by both transaction agglomeration and production agglomeration based on increasing returns to scale effect.

Suggested Citation

  • Wen, Mei, 2001. "Relocation and Agglomeration of Chinese Industry," Departmental Working Papers 2001-07, The Australian National University, Arndt-Corden Department of Economics.
  • Handle: RePEc:pas:papers:2001-07

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    References listed on IDEAS

    1. Puga, Diego & Venables, Anthony J., 1996. "The Spread of Industry: Spatial Agglomeration in Economic Development," Journal of the Japanese and International Economies, Elsevier, vol. 10(4), pages 440-464, December.
    2. Fujita, Masahisa & Krugman, Paul, 1995. "When is the economy monocentric?: von Thunen and Chamberlin unified," Regional Science and Urban Economics, Elsevier, vol. 25(4), pages 505-528, August.
    3. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 857-880.
    4. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, January.
    5. Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9781107001411, March.
    6. Tabuchi, Takatoshi & Yoshida, Atsushi, 2000. "Separating Urban Agglomeration Economies in Consumption and Production," Journal of Urban Economics, Elsevier, vol. 48(1), pages 70-84, July.
    7. 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.
    8. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    9. repec:hhs:iuiwop:430 is not listed on IDEAS
    10. Amiti, Mary, 1998. "New Trade Theories and Industrial Location in the EU: A Survey of Evidence," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 45-53, Summer.
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