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City–industry growth in China

Yi Lu (), Juan Ni, Zhigang Tao () and Linhui Yu

China Economic Review, 2013, vol. 27, issue C, 135-147

Abstract: This paper investigates the relevance of two leading theories of city–industry growth (i.e., specialization and diversity theories) in accounting for the fast yet uneven growth of industries in China's cities. Using a comprehensive dataset of manufacturing industries in 231 China's cities for the period 1998–2005, we find that specialization promotes city–industry growth, whereas diversity has no effect at all. In addition, we find that specialization is important for the growth of mature industries in China, but diversity is crucial for the development of China's relatively new and fast-growing industries. Our study contributes to the literature by examining the relevance of the specialization and diversity theories for a large and fast-growing developing economy.

Keywords: City–industry growth in China; Specialization; Diversity (search for similar items in EconPapers)
JEL-codes: R11 O12 L60 (search for similar items in EconPapers)
Date: 2013
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China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu

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