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Relocation and Agglomeration of Chinese Industry

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  • Wen, Mei

Abstract

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

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    7. Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9781107001411, January.
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    Cited by:

    1. World Bank, 2007. "Domestic Trade Impacts of the Expansion of the National Expressway Network in China," World Bank Publications - Reports 17410, The World Bank Group.

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