Geographical Concentration of Manufacturing Industries in China: The Importance of Spatial and Industrial Scales

Abstract

Using the most recent data from the first economic census in China, a team of China-based and American economic geographers investigates the geographical concentration of manufacturing industries at the provincial and county levels by integrating proxy variables for natural advantages, agglomeration economies, and institutional changes (e.g., decentralization) associated with economic transition. The authors focus their investigation on manufacturing activity as a whole, as well as on manufacturing categories at the two- and three-digit levels of aggregation (the latter representing a finer scale of analysis than used in almost all previous studies). Interesting differences emerge in the locational patterns of industries whose enterprises pursue strategies of globalization vis-à-vis local protectionism. Differences also are apparent in the impacts of agglomeration economies and knowledge spillover at different spatial scales. The findings suggest that both spatial scale and level of industrial aggregation matter when analyzing patterns of industrial agglomeration in China. Journal of Economic Literature, Classification Numbers: L10, L20, L60, O18. 5 figures, 5 tables, 50 references.