Relocation and Agglomeration of Chinese Industry

Mei Wen ()

Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics

Abstract: This paper investigates spatial concentration of Chinese manufacturing using the data collected in both the second and third national industrial censuses. It is found that many of China's manufacturing industries were highly geographically concentrated in several coastal regions in 1995. A historical comparison of the concentration levels between 1980, 1985 and 1995, suggests that manufacturing industries have become more geographically concentrated following the economic reform. Results from production function estimation and further regressions suggest that the industrial agglomeration in China is driven by both transaction agglomeration and production agglomeration based on increasing returns to scale effect.

Keywords: Industrial concentration; transportation cost; preferential development policies; the extent of the market; foreign investment; trade barriers. (search for similar items in EconPapers)
Pages: 31 pages
Date: 2001-08
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pas:papers:2001-07

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