“Lock-In Effect” of China’s Industrialization: An Empirical Analysis of the County-Level Cities in Southern Jiangsu

Abstract

This paper defines and explains the “lock-in effect” in China’s industrialization process using the county-level cities in southern Jiangsu while considering both internationalized and localized views. An empirical analysis of two typical representative indicators, per capita economic output and economic structure, using 2002, 2005, 2010, 2015 and 2019 official statistical data demonstrate that capital, labor and other traditional factors still play a role in the current “lock-in effect”. New elements, such as human capital, are manifesting their growing importance. Public services, such as science and technology, education, medical and health care, social safety and employment, are gradually exerting their influence to optimize the economic structure. This paper promotes pertinent development decisions associated with the “lock-in effect” that must be considered during current industrialization processes.