Globalization, Institutional Change, and Industrial Location: Economic Transition and Industrial Concentration in China

Abstract

He C., Wei Y. D. and Xie X. Globalization, institutional change, and industrial location: economic transition and industrial concentration in China, Regional Studies. Marketization and globalization in China may stimulate industrial clustering, while decentralization may lead to protectionism and industrial dispersion. This paper examines industrial distribution in China during 1980-2003. While Chinese industries have been increasingly concentrated geographically, the study found significant temporal and sectoral variations in concentration. Least protected industries have become increasingly concentrated, and most globalized industries are clustered in the coastal region. The analysis indicates that globalization and internal scale economies have contributed to geographical concentration, while protectionism has hindered industrial specialization. While industries are more likely to locate based on comparative advantages, external scale economies have not fostered industrial concentration. [image omitted] He C., Wei Y. D. et Xie X. La mondialisation, la transformation institutionnelle, et la localisation industrielle: la mutation economique et la concentration industrielle en Chine, Regional Studies. Il se peut que la commercialisation et la mondialisation en Chine encouragent l'etablissement de grappes industrielles, alors que la decentralisation amene au protectionnisme et a la dispersion industrielle. Cet article cherche a examiner la distribution industrielle en Chine entre 1980 et 2003. Tandis que l'industrie chinoise se concentre de plus en plus, il s'avere que cette concentration varie sensiblement des points de vue temporel et sectoriel. L'industrie la moins protegee se concentre de plus en plus et l'industrie la plus mondialisee s'agglomere pour la plupart dans la zone cotiere. L'analyse laisse voir que la mondialisation et les economies d'echelle internes ont contribue a la concentration geographique, alors que le protectionnisme a entrave la specialisation industrielle. Pendant que l'industrie se localise en fonction de l'avantage comparatif, les economies d'echelle externes n'encouragent pas la concentration industrielle. Mutation economique Mondialisation Decentralisation Agglomeration Concentration geographique Chine He C., Wei Y. D. und Xie X. Globalisierung, institutioneller Wandel und Industriestandorte: wirtschaftlicher Wandel und industrielle Konzentration in China, Regional Studies. Die Marktorientierung und Globalisierung in China kann sich fordernd auf die industrielle Clusterbildung auswirken, wahrend eine Dezentralisierung zu Protektionismus und industrieller Streuung fuhren kann. In diesem Beitrag untersuchen wir die industrielle Verteilung in China im Zeitraum von 1980 bis 2003. Die chinesischen Industrien haben sich geografisch zunehmend konzentriert, doch zugleich finden wir signifikante zeitliche und sektorale Schwankungen hinsichtlich der Konzentration. Die am wenigsten geschutzten Industrien haben sich zunehmend konzentriert, wahrend die am starksten globalisierten Industrien in Cl...

Trends and Determinants of the Geographical Distribution of Economic Activities: Evidence From Indonesian Manufacturing

“…He et al (2008) found that during 1980-2003, Chinese industries were geographically more heavily concentrated; this was particularly the case for the least-protected industries (e.g., rubber, chemical, education, and sporting goods). They also asserted that industries with stronger connections in foreign markets as part of the globalization process were more heavily concentrated, particularly in coastal regions.…”

“…Nonetheless, the role of raw materials is found to be limited at the city level when we use the value-added measurement. Kim (1995) found that production economies of scale supported localization in U.S. manufacturing, while He et al (2008) concluded that internal economics scale contributed to geographical concentration. However, those variables become statistically insignificant when we impose robust standard errors (see Table 7).…”

“…In the context of developing countries, a large body of study on geographical concentration relates in China (e.g., Ge, 2009;He et al, 2008;Lu and Tao, 2009). He et al (2008) found that during 1980-2003, Chinese industries were geographically more heavily concentrated; this was particularly the case for the least-protected industries (e.g., rubber, chemical, education, and sporting goods).…”

“…These findings agreed with those of Ge (2009), who asserted that export-oriented and foreign-invested industries have a higher degree of agglomeration than others and tend to cluster in regions accessible to foreign markets (e.g., close to airports). Furthermore, local protections related to the decentralization policy stymied geographical concentration or industrial specialization (He et al, 2008;Lu and Tao, 2009). …”

“…The objectives of this study are to describe the distribution of economic activities by looking at the trends in regional specialization and geographical concentration, 2 See, for instance, Ge (2009), He et al (2008), and Lu and Tao (2009). emphasizing how the economic crisis and decentralization policy changed the pattern and to examine the determinant factors of the industry's spatial concentration. This study contributes to the literature by documenting the long-term regional specialization and concentration trends of the Indonesian manufacturing industry from 1990 to 2010.…”