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Regional Inequality, Industry Agglomeration and Foreign Trade: The Case of China

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  • Ying Ge

Abstract

How do foreign trade and foreign direct investment affect regional inequality? Foreign trade and investment may affect internal economic geography, and the resulting industry agglomeration may contribute to regional inequality. This paper provides empirical evidence supporting this linkage. The results indicate that the increasing regional inequality in China has been accompanied by an increase in the degree of regional specialization and industry agglomeration. Foreign trade and foreign investment are closely related to industry agglomeration in China.

Suggested Citation

  • Ying Ge, 2006. "Regional Inequality, Industry Agglomeration and Foreign Trade: The Case of China," WIDER Working Paper Series RP2006-105, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2006-105
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    Cited by:

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    3. Fei Wang & Qiliang Mao, 2017. "Spatial Dynamics of Chinese Manufacturing Industries: Comparative Advantage versus New Economic Geography," Applied Economics and Finance, Redfame publishing, vol. 4(3), pages 30-46, May.
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    5. Lu Liu & Yu Tian & Haiquan Chen, 2023. "The Costs of Agglomeration: Misallocation of Credit in Chinese Cities," Land, MDPI, vol. 12(3), pages 1-19, February.
    6. Elif Alkay & Geoffrey Hewings, 2012. "The determinants of agglomeration for the manufacturing sector in the Istanbul metropolitan area," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(1), pages 225-245, February.
    7. Fernandes, Ana M. & Sharma, Gunjan, 2012. "Together we stand ? agglomeration in Indian manufacturing," Policy Research Working Paper Series 6062, The World Bank.
    8. Lili Wang & Adam Szirmai, 2013. "The Unexpected Convergence of Regional Productivity in Chinese Industry, 1978--2005," Oxford Development Studies, Taylor & Francis Journals, vol. 41(1), pages 29-53, March.

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