Geographical agglomeration and co-agglomeration of foreign and domestic enterprises: a case study of Chinese manufacturing industries

Canfei He () and Junsong Wang

Post-Communist Economies, 2010, vol. 22, issue 3, 323-343

Abstract: Industrial agglomeration has been pervasive owing to natural advantages, spillover effects and institutional advantages. The co-agglomeration of foreign and domestic enterprises may be a driving force of intra-industrial agglomeration. Theories however provide conflicting predictions on whether foreign and domestic enterprises share similar locations. Based on data from the Annual Survey of Industrial Firms in 2005 in China, this study finds that foreign enterprises are considerably more agglomerated than domestic enterprises, and there exist significant industrial variations in the intra-industry co-agglomeration of foreign and domestic enterprises. Statistical analysis suggests that foreign-specific agglomeration and dependence on intermediate inputs from primary industries discourage the co-agglomeration of foreign and domestic enterprises. Differences in equipment, technology and labour productivity result in locational patterns of foreign enterprises distinct from those of domestic enterprises. Meanwhile statistical results confirm the positive role of external economies and knowledge spillover effects in driving the co-agglomeration of foreign and domestic enterprises.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/14631377.2010.498682 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:pocoec:v:22:y:2010:i:3:p:323-343

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CPCE20

DOI: 10.1080/14631377.2010.498682

Access Statistics for this article

Post-Communist Economies is currently edited by Roger Clarke

More articles in Post-Communist Economies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().