Foreign trade, local protectionism and industrial location in China

Jiuli Huang () and Kunwang Li ()
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Jiuli Huang: Center for Transnationals′ Studies and TEDA College, Nankai University, Tianjin 300071, China
Kunwang Li: Department of International Economics and Trade, Nankai University, Tianjin 300071, China

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2007, vol. 2, issue 1, 24-56

Abstract: In this paper, we find that, in China, geographical changes of industrial bases in the 1980s had led to a slight drop in the extent of specialization and location imbalance, but in 1990s the specialization and industry imbalance have further developed. The geographical advantage for trade has a significant impact on the location patterns, and the effects of local protectionism are confined to the hinterland in 1990s. The role of comparative advantage in shaping industry location is evident, and some predictions derived from new economic geography are partially supported.

Keywords: foreign trade; local protectionism; industrial location (search for similar items in EconPapers)
JEL-codes: F13 F14 R12 (search for similar items in EconPapers)
Date: 2007
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