Location choice and spatial distribution of the electronic information manufacturing industry in China

Xiaofei Chen, Enru Wang, Jianfeng Guo and Changhong Miao

Growth and Change, 2021, vol. 52, issue 3, 1410-1439

Abstract: This paper examines the changing spatial distribution of electronic information manufacturing (EIM) industry in China by focusing on the location choice of new firms. A three‐pronged “global‐regional‐local” nexus framework was proposed to identify the factors that influence firm location choice. Tobit regression analysis was performed to evaluate the impacts of these factors. The study reveals the spatial concentration of the EIM industry and a trend of westward diffusion. The regression analyses stratified by time period and by region demonstrate spatial and temporal variabilities in the influence of many factors, especially the regional advantage factors (e.g., labor cost, localization economies, and urbanization economies). Meanwhile, some factors, such as foreign direct investment, the presence of state‐owned enterprises, and local government policies, show stable effects over time and across regions.

Date: 2021
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