Protectionism and Industry Location in Chinese Provinces

Cécile Batisse and Sandra Poncet ()

Journal of Chinese Economic and Business Studies, 2004, vol. 2, issue 2, 133-154

Abstract: This paper investigates the determinants of activities' location in Chinese provinces based on a unique panel data set, paying particular attention to the role of local protectionism. We estimate a model of production location across Chinese provinces that combines factor endowments and geographical consideration. Results emphasize that the dynamics of comparative advantages and the forces of the new geographic economy are at work in Chinese provinces. Estimations, however, lend strong support to the role of local protectionism. The location of economic activities in Chinese provinces does thus not exclusively follow the logic of the market.

Keywords: China; protectionism; international trade; location of activities; externalities (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (15)

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DOI: 10.1080/14765280410001684797

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