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Regional industrial evolution in China

Author

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  • Canfei He
  • Yan Yan
  • David Rigby

Abstract

Evolutionary economic geography (EEG) indicates that regional industrial development is path dependent. The empirical studies in EEG however have not paid sufficient attention to the importance of global linkages nor the role of regional institutions in driving industrial dynamics. Based on firm level data of four‐digit manufacturing industries during 1998 to 2008 in China, we find that Chinese regions branch into new industries technologically related to the existing industrial portfolio and related industries are less likely to exit. Further analysis reveals that global linkages, economic liberalization and state involvement not only create favourable conditions to allow a larger role of technological relatedness but also generate opportunities for Chinese regions to create new paths of industrial development. La geografía económica evolutiva (GEE) indica que el desarrollo industrial regional depende de la ruta. Sin embargo, los estudios empíricos sobre GEE no han prestado suficiente atención a la importancia de los vínculos globales, ni al papel de las instituciones regionales en dar impulso a las dinámicas industriales. A partir de datos a nivel de empresa de industrias manufactureras de cuatro dígitos durante 1998 a 2008 en China, se encontró que las regiones chinas se ramifican hacia nuevas industrias relacionadas tecnológicamente con la cartera industrial existente y que es menos probable que salgan las industrias relacionadas. Un análisis más detallado revela que los vínculos mundiales, la liberalización económica y la participación estatal no solo crean condiciones favorables para permitir un mayor papel de la similitud tecnológica, sino que también generan oportunidades para que las regiones chinas creen nuevas vías de desarrollo industrial. 進化経済地理学では、地域の産業発展が経路依存的であることが指摘されている。しかし、進化経済地理学における実証研究は、グローバルな産業連関の重要性や産業のダイナミクスの推進における地方機関の役割に対してこれまで十分な関心を示していない。1998年から2008年までの中国における、4桁の産業分類コードの製造業の企業レベルのデータから、中国の地方は、既存の産業ポートフォリオに科学技術的に関連がある新しい産業に手を広げており、これに関連する産業は消滅する可能性が低いことが分かる。より詳しい分析から、グローバルな産業連関、経済自由化、国家の介入は、科学技術的な関連の役割がさらに大きくなることを許容できる好条件を生み出すだけでなく、中国の地方が産業発展の新しい道を切り拓く機会をも創出することが明らかになった。

Suggested Citation

  • Canfei He & Yan Yan & David Rigby, 2018. "Regional industrial evolution in China," Papers in Regional Science, Wiley Blackwell, vol. 97(2), pages 173-198, June.
    • Handle: RePEc:bla:presci:v:97:y:2018:i:2:p:173-198
    DOI: 10.1111/pirs.12246
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    2. Brantly Callaway & Tong Li & Joel Rodrigue & Yuya Sasaki & Yong Tan, 2024. "Regulation, Emissions and Productivity: Evidence from China’s Eleventh Five-Year Plan," Staff Working Papers 24-7, Bank of Canada.
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    4. Kroll Henning & Neuhäusler Peter, 2020. "Recent Trends of Regional Development in China – Technological Portfolios and Economic Growth," ZFW – Advances in Economic Geography, De Gruyter, vol. 64(1), pages 14-27, March.
    5. Pierre-Alexandre Balland & Ron Boschma, 2019. "Mapping the potential of EU regions to contribute to Industry 4.0," Papers in Evolutionary Economic Geography (PEEG) 1925, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2019.
    6. Wang, Tao & Xiao, Shiying & Yan, Jun & Zhang, Panpan, 2021. "Regional and sectoral structures of the Chinese economy: A network perspective from multi-regional input–output tables," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 581(C).
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    8. Ron Boschma, 2021. "Global Value Chains from an Evolutionary Economic Geography perspective: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 2134, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.
    9. Tengfei Wang & Henrik Halkier & Laura James & Renxu Gu & Cheng Chi, 2022. "External Knowledge Linkages and the Evolution of Comparative Advantage: An Examination of Territorial Knowledge Dynamics in China," Sustainability, MDPI, vol. 14(8), pages 1-14, April.
    10. Yibo Qiao & Andrea Ascani & Andrea Morrison, 2024. "External linkages and regional diversification in China: The role of foreign multinational enterprises," Environment and Planning A, , vol. 56(4), pages 1077-1101, June.
    11. Xuqian Hu & Canfei He, 2020. "Nontariff measures, trade deflection, and market expansion of exporters in China," Growth and Change, Wiley Blackwell, vol. 51(3), pages 932-953, September.
    12. Xuliang Zhang & Xiaohui Hu & Wei Xu, 2020. "Spatio‐temporal dynamics of technical efficiency in China’s specialized markets: A stochastic frontier analysis approach," Growth and Change, Wiley Blackwell, vol. 51(3), pages 1182-1202, September.
    13. Yibo Qiao & Nicola Cortinovis & Andrea Morrison, 2024. "MNE Spillovers and Local Export Dynamics in China: The Role of Relatedness and Forward-Backward Linkages," Papers in Evolutionary Economic Geography (PEEG) 2415, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2024.
    14. Fusillo, Fabrizio & Quatraro, Francesco & Santhià , Cristina, 2023. "Leveraging on Circular Economy Technologies for Recombinant Dynamics: Do Localized Knowledge and Digital Complementarities Matter?," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 202302, University of Turin.
    15. Moritz Breul & Miguel Atienza, 2022. "Extractive Industries and Regional Diversification: A Multidimensional Framework for Diversification in Mining Regions," Papers in Evolutionary Economic Geography (PEEG) 2213, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2022.
    16. Ron Boschma, 2021. "Designing Smart Specialization Policy: relatedness, unrelatedness, or what?," Papers in Evolutionary Economic Geography (PEEG) 2128, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2021.
    17. Xiaowen Li & Yiming Tan & Desheng Xue, 2022. "From World Factory to Global City-Region: The Dynamics of Manufacturing in the Pearl River Delta and Its Spatial Pattern in the 21st Century," Land, MDPI, vol. 11(5), pages 1-19, April.
    18. Zehong Wang & Shaojian Wang & Jieyu Wang & Yuqu Wang, 2022. "Development zones and urban economic performance in China: Direct impact and channel effects," Growth and Change, Wiley Blackwell, vol. 53(4), pages 1762-1782, December.
    19. Alexandra Tsvetkova & Tessa Conroy & Jean-Claude Thill, 2020. "Surviving in a high-tech manufacturing industry: the role of innovative environment and proximity to metropolitan industrial portfolio," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 501-527, June.
    20. Davide Castellani & Giovanni Marin & Sandro Montresor & Antonello Zanfei, 2020. "Foreign Direct Investments and Regional Specialization in Environmental Technologies," SEEDS Working Papers 0620, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Apr 2020.
    21. Moritz Breul & Thi Xuan Thu Nguyen, 2021. "The Impact of Extractive Industries on Regional Diversification: Evidence from Vietnam," Papers in Evolutionary Economic Geography (PEEG) 2129, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2021.
    22. Cassandra C. Wang & Gary Gereffi & Zhigao Liu, 2021. "Beyond technological relatedness: An evolutionary pro‐growth coalition and industrial transformation in Kunshan, China," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2318-2341, December.
    23. Ron Boschma, 2018. "The geographical dimension of structural change," Papers in Evolutionary Economic Geography (PEEG) 1839, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2018.
    24. Heng Chen & Yan Zhang, 2022. "Regional Logistics Industry High-Quality Development Level Measurement, Dynamic Evolution, and Its Impact Path on Industrial Structure Optimization: Finding from China," Sustainability, MDPI, vol. 14(21), pages 1-21, October.
    25. Emanuele Felice & Iacopo Odoardi & Dario D’Ingiullo, 2023. "The Chinese Inland-Coastal Inequality: The Role of Human Capital and the 2007–2008 Crisis Watershed," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(2), pages 761-788, July.

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