Comparative Advantage, Scale Economy and Regional Specialization：An Empirical Analysis Based on China’s Industries

Zheng Lu and Xiang Deng
Authors registered in the RePEc Author Service: 路征

MPRA Paper from University Library of Munich, Germany

Abstract: Current empirical studies on regional specialization mainly focused on measurement of China’s overall regional specialization level, while determinants of industrial geographical distribution, namely the regional specialization pattern, are just paid few attentions. This paper analyzed the regional specialization pattern empirically by employing statistical data of China two-digit industries from 1987 to 2007 through estimating a model which takes comparative advantage and scale economy as driven factors of industrial geographical concentration. Conclusions show that the overall regional specialization of Chinese industries increased between 1987 and 2007, however, it decreased obviously in 1990s. And, scale economy rather than comparative advantage arising from production cost is a long-run factor of China’s industrial geographical distribution.

Keywords: Comparative; Advantage; Scale; Economy; Regional; Specialization; China (search for similar items in EconPapers)
JEL-codes: R12 R30 (search for similar items in EconPapers)
Date: 2012-05-20
New Economics Papers: this item is included in nep-eff, nep-geo, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://mpra.ub.uni-muenchen.de/41832/1/MPRA_paper_41832.pdf revised version (application/pdf)

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