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Patterns of China's industrialization: Concentration, specialization, and clustering

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  • Long, Cheryl
  • Zhang, Xiaobo

Abstract

This paper presents a few stylized facts on the patterns of China's industrialization by computing a set of multi-dimensional measures on industrial concentration, regional specialization, and clustering based on census data at the firm level in 1995 and 2004. Our results show that China's rapid industrialization is characterized by the following patterns: industries have become more spatially concentrated; regions have become increasingly specialized; and firms have become more interconnected, both within industries and within regions. In addition, the number of firms is growing faster in clustered areas than non-clustered ones. Together these patterns suggest that China's industrialization process is largely cluster-based—a phenomenon in which a large number of highly interconnected firms are located within a well-defined geographic region.

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  • Long, Cheryl & Zhang, Xiaobo, 2012. "Patterns of China's industrialization: Concentration, specialization, and clustering," China Economic Review, Elsevier, vol. 23(3), pages 593-612.
    • Handle: RePEc:eee:chieco:v:23:y:2012:i:3:p:593-612
    DOI: 10.1016/j.chieco.2011.09.002
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    6. Hu, Cui & Xu, Zhaoyuan & Yashiro, Naomitsu, 2015. "Agglomeration and productivity in China: Firm level evidence," China Economic Review, Elsevier, vol. 33(C), pages 50-66.
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    8. Shuju Hu & Wei Song & Chenggu Li & Charlie H. Zhang, 2019. "The Evolution of Industrial Agglomerations and Specialization in the Yangtze River Delta from 1990–2018: An Analysis Based on Firm-Level Big Data," Sustainability, MDPI, vol. 11(20), pages 1-21, October.
    9. Xu, Cheng-Gang & Guo, Di & Jiang, Kun & Yang, Xiyi, 2017. "Clustering, Growth, and Inequality in China," CEPR Discussion Papers 12543, C.E.P.R. Discussion Papers.
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    More about this item

    Keywords

    Industrial clustering; Agglomeration; Geographic concentration; Regional specialization; China;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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