IDEAS home Printed from https://ideas.repec.org/a/eee/chieco/v59y2020ics1043951x19301439.html
   My bibliography  Save this article

Transition from factor-driven to innovation-driven urbanization in China: A study of manufacturing industry automation in Dongguan City

Author

Listed:
  • Li, Xun
  • Hui, Eddie Chi-man
  • Lang, Wei
  • Zheng, Shali
  • Qin, Xiaozhen

Abstract

Following the reform and opening up of China, the Pearl River Delta (PRD) region became a center of foreign investment due to its comparative advantages of cheap labor costs and low land use prices. The tide of migrant workers, comprising a large surplus rural labor force that flooded into the PRD region, caused a rapid increase in the urban population. From the 1980s to the 2000s, migrant workers were a key force that drove urbanization in China. The utilization of automation technology in production since the 2010s has increased the number of unemployed laborers and shifted the dynamics of urbanization. This study investigated how automation is applied in production processes and its effects on different industries, namely, those related to textiles, electronic information, and home electrical appliance manufacturing; specifically we sought to examine the complex relationship among automation, the labor forces, and urbanization by illustrating the implementation of automation in production processes and its influence on labor forces and urbanization. This study revealed that companies in different industries implement automation to differing degrees and through varied upgrading paths. All industries can ultimately achieve technological transformation and cross-industry development. For labor forces, automation exerts two simultaneous folded effects, namely, the direct replacement of low- to middle-skilled workers and the creation of new jobs. The penetration of automation into manufacturing industries has changed the dynamics of urbanization and the social spatial structure of cities, leading to a polarization of the labor forces and the emergence of “dual cities”.

Suggested Citation

  • Li, Xun & Hui, Eddie Chi-man & Lang, Wei & Zheng, Shali & Qin, Xiaozhen, 2020. "Transition from factor-driven to innovation-driven urbanization in China: A study of manufacturing industry automation in Dongguan City," China Economic Review, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:chieco:v:59:y:2020:i:c:s1043951x19301439
    DOI: 10.1016/j.chieco.2019.101382
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1043951X19301439
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.chieco.2019.101382?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yanrui Wu, 2016. "China's Capital Stock Series by Region and Sector," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 11(1), pages 156-172, March.
    2. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    3. Eric Bartelsman & Phoebus Dhrymes, 1998. "Productivity Dynamics: U.S. Manufacturing Plants, 1972–1986," Journal of Productivity Analysis, Springer, vol. 9(1), pages 5-34, January.
    4. Georg Graetz & Guy Michaels, 2017. "Is Modern Technology Responsible for Jobless Recoveries?," American Economic Review, American Economic Association, vol. 107(5), pages 168-173, May.
    5. Guan, JianCheng & Pang, Lanxin, 2017. "Industry specific effects on innovation performance in China," China Economic Review, Elsevier, vol. 44(C), pages 125-137.
    6. Barbieri, Elisa & Di Tommaso, Marco R. & Bonnini, Stefano, 2012. "Industrial development policies and performances in Southern China: Beyond the specialised industrial cluster program," China Economic Review, Elsevier, vol. 23(3), pages 613-625.
    7. GOLLEY, Jane & WEI, Zheng, 2015. "Population dynamics and economic growth in China," China Economic Review, Elsevier, vol. 35(C), pages 15-32.
    8. Andersson, Roland & Quigley, John M. & Wilhelmsson, Mats, 2009. "Urbanization, productivity, and innovation: Evidence from investment in higher education," Journal of Urban Economics, Elsevier, vol. 66(1), pages 2-15, July.
    9. J. Knoben, 2009. "Localized inter-organizational linkages, agglomeration effects, and the innovative performance of firms," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 757-779, September.
    10. Su, Yaqin & Tesfazion, Petros & Zhao, Zhong, 2018. "Where are the migrants from? Inter- vs. intra-provincial rural-urban migration in China," China Economic Review, Elsevier, vol. 47(C), pages 142-155.
    11. Zhou, Yixiao & Tyers, Rod, 2019. "Automation and inequality in China," China Economic Review, Elsevier, vol. 58(C).
    12. Philippe Aghion & Benjamin F. Jones & Charles I. Jones, 2018. "Artificial Intelligence and Economic Growth," NBER Chapters, in: The Economics of Artificial Intelligence: An Agenda, pages 237-282, National Bureau of Economic Research, Inc.
    13. Golley, Jane & Meng, Xin, 2011. "Has China run out of surplus labour?," China Economic Review, Elsevier, vol. 22(4), pages 555-572.
    14. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    15. H. Allan Hunt & Timothy L. Hunt, "undated". "Human Resource Implications of Robotics," Upjohn Working Papers hahtlh1985, W.E. Upjohn Institute for Employment Research.
    16. Dunne, Paul & Hughes, Alan, 1994. "Age, Size, Growth and Survival: UK Companies in the 1980s," Journal of Industrial Economics, Wiley Blackwell, vol. 42(2), pages 115-140, June.
    17. Chang, Jae-Hee. & Rynhart, Gary. & Huynh, Phu., 2016. "ASEAN in transformation how technology is changing jobs and enterprises," ILO Working Papers 994909343402676, International Labour Organization.
    18. Lang, Wei & Long, Ying & Chen, Tingting & Li, Xun, 2019. "Reinvestigating China’s urbanization through the lens of allometric scaling," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 525(C), pages 1429-1439.
    19. Xing, Chunbing & Zhang, Junfu, 2017. "The preference for larger cities in China: Evidence from rural-urban migrants," China Economic Review, Elsevier, vol. 43(C), pages 72-90.
    20. Jedwab,Remi Camille & Christiaensen,Luc & Gindelsky,Marina, 2015. "Demography, urbanization and development : rural push, urban pull and... urban push ?," Policy Research Working Paper Series 7333, The World Bank.
    21. Majumdar, Sumit K. & Venkataraman, S., 1993. "New technology adoption in US telecommunications: The role of competitive pressures and firm-level inducements," Research Policy, Elsevier, vol. 22(5-6), pages 521-536, November.
    22. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    23. Yi Liu, 2017. "The dynamics of local upgrading in globalizing latecomer regions: a geographical analysis," Regional Studies, Taylor & Francis Journals, vol. 51(6), pages 880-893, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guangliang Yang & Lixing Li & Shihe Fu, 2020. "Do rural migrants benefit from labor market agglomeration economies? Evidence from Chinese cities," Growth and Change, Wiley Blackwell, vol. 51(3), pages 910-931, September.
    2. Bu, Yan & Wang, Erda & Möst, Dominik & Lieberwirth, Martin, 2022. "How population migration affects carbon emissions in China: Factual and counterfactual scenario analysis," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    3. Li, Jing, 2014. "The influence of state policy and proximity to medical services on health outcomes," Journal of Urban Economics, Elsevier, vol. 80(C), pages 97-109.
    4. Carlos Garriga & Aaron Hedlund & Yang Tang & Ping Wang, 2023. "Rural-Urban Migration, Structural Transformation, and Housing Markets in China," American Economic Journal: Macroeconomics, American Economic Association, vol. 15(2), pages 413-440, April.
    5. Andrés Rodríguez-Pose & Tobias D. Ketterer, 2012. "Do Local Amenities Affect The Appeal Of Regions In Europe For Migrants?," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 535-561, October.
    6. Giulio Bottazzi & Taewon Kang & Federico Tamagni, 2023. "Persistence in firm growth: inference from conditional quantile transition matrices," Small Business Economics, Springer, vol. 61(2), pages 745-770, August.
    7. Ke Ding & Jiutang Pan, 2014. "The shanzhai cell phone: platforms and small business dynamics," Chapters, in: Mariko Watanabe (ed.), The Disintegration of Production, chapter 4, pages 101-126, Edward Elgar Publishing.
    8. Faggio, G. & Schluter, T. & vom Berge, P., 2019. "Interaction of Public and Private Employment: Evidence from a German Government Move," Working Papers 19/09, Department of Economics, City University London.
    9. Falco, Paolo & Haywood, Luke, 2016. "Entrepreneurship versus joblessness: Explaining the rise in self-employment," Journal of Development Economics, Elsevier, vol. 118(C), pages 245-265.
    10. Cowan, Robin & Zinovyeva, Natalia, 2013. "University effects on regional innovation," Research Policy, Elsevier, vol. 42(3), pages 788-800.
    11. BARCEVICIUS Egidijus & CIBAITE Guonda & CODAGNONE Cristiano & GINEIKYTE Vaida & KLIMAVICIUTE Luka & LIVA Giovanni & MATULEVIC Loreta & MISURACA Gianluca & VANINI Irene, 2019. "Exploring Digital Government transformation in the EU," JRC Research Reports JRC118857, Joint Research Centre.
    12. Neumark, David & Simpson, Helen, 2015. "Place-Based Policies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1197-1287, Elsevier.
    13. Valentina De Marchi & Roberto Grandinetti & Riccardo Voltani, 2014. "Come stanno cambiando le economie regionali. Un confronto tra Veneto, Piemonte, e Puglia," ECONOMIA E SOCIET? REGIONALE, FrancoAngeli Editore, vol. 2014(2), pages 126-160.
    14. Néstor Duch-Brown & Javier García-Estévez & Martí Parellada-Sabata, 2011. "Universities and regional economic growth in Spanish regions," Working Papers 2011/6, Institut d'Economia de Barcelona (IEB).
    15. MARSCHINSKI Robert & DE AMORES HERNANDEZ Antonio & AMOROSO Sara & BAUER Peter & CARDANI Roberta & CSEFALVAY Zoltan & GENTY Aurelien & GKOTSIS Petros & GREGORI Wildmer & GRASSANO Nicola & HERNANDEZ GUE, 2021. "EU competitiveness: recent trends, drivers, and links to economic policy: A Synthesis Report," JRC Research Reports JRC123232, Joint Research Centre.
    16. Tobias Schlegel & Curdin Pfister & Uschi Backes-Gellner, 2022. "Tertiary education expansion and regional firm development," Regional Studies, Taylor & Francis Journals, vol. 56(11), pages 1874-1887, November.
    17. Massimiliano Bratti & Luca Benedictis & Gianluca Santoni, 2014. "On the pro-trade effects of immigrants," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(3), pages 557-594, August.
    18. Georg Graetz & Guy Michaels, 2018. "Robots at Work," The Review of Economics and Statistics, MIT Press, vol. 100(5), pages 753-768, December.
    19. Néstor Duch-Brown & Javier García-Estévez, 2011. "Do universities affect firms’ location decisions? Evidence from Spain," Working Papers 2011/7, Institut d'Economia de Barcelona (IEB).
    20. Faggio, Giulia, 2019. "Relocation of public sector workers: Evaluating a place-based policy," Journal of Urban Economics, Elsevier, vol. 111(C), pages 53-75.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:chieco:v:59:y:2020:i:c:s1043951x19301439. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/chieco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.