Evolution of Production Space and Regional Industrial Structures in China

Qi Guo and Canfei He

No 1521, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: A growing literature on evolutionary economic geography concludes that regional industrial evolution is path-dependent and is determined by the pre-existing industries. This study applies the co-occurrence approach to calculate the production relatedness and portrays the production space and then examines the impact of production relatedness on regional industrial evolution. The findings report that production relatedness does underscore the regional structure change in China but shows significant regional differences in the evolution path. The coastal region has strong tendency of path dependence in its industrial evolution, while North West and South West break the path-dependent trajectory and transition into high productive sectors distant from their own production network. The results suggest that national policies can play its crucial role in creating new paths in China's regional development. Institutions matter to allow the significant role of industry relatedness in driving regional industrial evolution.

Keywords: Production space; Industry relatedness; Regional Industrial Evolution; China (search for similar items in EconPapers)
Date: 2015-07, Revised 2015-07
New Economics Papers: this item is included in nep-cna, nep-geo, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:1521

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