Industry Characteristics, Spatial Competition and Industrial Concentration - Evidence from China

Yeqiang Wang and Houkai Wei
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Yeqiang Wang: Institute of Industrial Economics, Chinese Academy of Social Sciences
Houkai Wei: Institute of Industrial Economics, Chinese Academy of Social Sciences

Revista de Economie Industriala, 2008, vol. 6, issue 1, pages 20-35

Abstract: We study the determinants of geographic concentration of manufacturing industries in a spatial competition framework. Based on a panel database of China during 1995~2003, we have the following findings. Firstly, some traditional comparative advantages in production factors such as labor endowment are becoming the factors that prevent the industrial concentration. Secondly, the major factors that promote geographic manufacturing concentration are technology spillover and industry linkage. Thirdly, the effect of scale economy on manufacturing concentration is significant, but the direction depends on how the concentration is measured.

Keywords: Industry Characteristics; Spatial Competition; Geographic Concentration (search for similar items in EconPapers)
JEL-codes: L16 R11 R12 (search for similar items in EconPapers)

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