Global and Local: Measuring Geographical Concentration of China's Manufacturing Industries

Abstract

Based on a county-level Chinese industry survey data set, this article aims to extend the agglomeration literature by applying and comparing selected combination indexes of geographical concentration that incorporate both traditional indexes of inequality and measures of spatial autocorrelation at the global level and by applying and comparing a new measure, the focal location quotient (FLQ), to the local Moran's I, a commonly used local indicator of spatial association, at the county level. At the global level, the results show that the combination indexes used are generally effective for comparing the extent of geographical concentration across industries, and they could serve as useful dependent variables in modeling agglomeration effects across industries. At the local level, specific spatial patterns of production concentrations are identified for textiles, machinery, food manufacturing, and the electronics and telecommunication industries. FLQ tends to generate more generalized patterns than does the local Moran statistic. Mapping the local statistics is useful in supplementing the global measures, and those maps tend to support the results of the global combination indexes.