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Regional Concentration of Industry in China: Decentralised Choices or a Central Plan?

Stephen Sheppard and Dan Zhao

No 2016-17, Department of Economics Working Papers from Department of Economics, Williams College

Abstract: The economic growth and development of China during the past 35 years has been associated with profound impacts on the well-being of the Chinese people, on patterns of global trade and prices of manufactured goods, and on industrial location within China itself. Many would view China's government and its policies as the dominant, perhaps exclusive, force in determining location and concentration of Chinese industry. This raises the question: can a theoretical approach based on decentralised optimization and location choice provide insights concerning the ongoing changes in industrial concentration in China? We address this question, putting forward a simple model and testing it using Chinese data.

Keywords: Industrial location; China; location quotient (search for similar items in EconPapers)
JEL-codes: O18 P25 R12 R30 (search for similar items in EconPapers)
Pages: 64 pages
Date: 2016-12
New Economics Papers: this item is included in nep-cna, nep-geo and nep-tra
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