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Industry location in Chinese provinces: Does energy abundance matter?

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  • Grether, Jean-Marie
  • Hotz, Irina
  • Mathys, Nicole A.

Abstract

We identify the driving factors of manufacturing activity across Chinese provinces with a particular focus on energy endowments. A model of production location is estimated, including both comparative advantage and economic geography determinants. The data set used consists of a panel of 28 Chinese provinces and 12 manufacturing industries over the period 1999–2009. Results confirm the relative importance of energy endowments. We find that larger energy endowments are significantly correlated with larger production of energy-intensive sectors. Disaggregation across energy carriers shows that coal exhibits the strongest impact. These results are robust across alternatives.

Suggested Citation

  • Grether, Jean-Marie & Hotz, Irina & Mathys, Nicole A., 2014. "Industry location in Chinese provinces: Does energy abundance matter?," Energy Economics, Elsevier, vol. 44(C), pages 383-391.
    • Handle: RePEc:eee:eneeco:v:44:y:2014:i:c:p:383-391
    DOI: 10.1016/j.eneco.2014.05.005
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    Cited by:

    1. Wang, Delu & Mao, Jinqi & Cui, Rong & Yu, Jian & Shi, Xunpeng, 2022. "Impact of inter-provincial power resource allocation on enterprise production behavior from a multi-scale correlation perspective," Energy Economics, Elsevier, vol. 114(C).
    2. Bajo-Buenestado, Raúl, 2018. "Relationship-specificity, incomplete contracts, and the pattern of trade: A comment on the role of natural resources," Energy Economics, Elsevier, vol. 75(C), pages 410-422.
    3. Robert J R Elliott & Puyang Sun & Tong Zhu, 2021. "Energy Abundance, the Geographical Distribution of Manufacturing, and International Trade," Discussion Papers 21-16, Department of Economics, University of Birmingham.
    4. Reyer Gerlagh & Nicole A. Mathys & Thomas O. Michielsen, 2015. "Energy Abundance, Trade and Specialization," The Energy Journal, , vol. 36(3), pages 235-246, July.
    5. Haibo Du & Xuepeng Ji & Xiaowei Chuai, 2022. "Spatial Differentiation and Influencing Factors of Water Pollution-Intensive Industries in the Yellow River Basin, China," IJERPH, MDPI, vol. 19(1), pages 1-16, January.
    6. Sylvain Weber & Reyer Gerlagh & Nicole A. Mathys & Daniel Moran, 2017. "CO2 embedded in trade: trends and fossil fuel drivers," Development Working Papers 413, Centro Studi Luca d'Agliano, University of Milano.
    7. Li, Nan & Chen, Wenying & Zhang, Qiang, 2020. "Development of China TIMES-30P model and its application to model China's provincial low carbon transformation," Energy Economics, Elsevier, vol. 92(C).

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    More about this item

    Keywords

    China; Industry location; Energy endowments; Economic geography;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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