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Ownership reform and the changing manufacturing landscape in Chinese cities: The case of Wuxi

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  • Lei Zhou
  • Shan Yang
  • Shuguang Wang
  • Liyang Xiong

Abstract

Since the economic transition, manufacturing in China has undergone profound changes not only in number of enterprises, but also in ownership structure and intra-urban spatial distribution. Investigating the changing manufacturing landscape from the perspective of ownership structure is critical to a deep understanding of the changing role of market and government in re-shaping manufacturing location behavior. Through a case study of Wuxi, a city experiencing comprehensive ownership reform, this paper presents a detailed analysis of the intra-urban spatial shift of manufacturing, identifies the location discrepancies, and examines the underlying forces responsible for the geographical differentiations. Through zone- and district-based analysis, a distinctive trend of decentralization and suburbanization, as well as an uneven distribution of manufacturing, is unveiled. The results of Location Quotient analysis show that the distribution of manufacturing by ownership exhibits distinctive spatial patterns, which is characterized by a historically-based, market-led, and institutionally-created spatial variation. By employing Hot Spot analysis, the role of development zones in attracting manufacturing enterprises of different ownerships is established. Overall, the location behavior of the diversified manufacturing has been increasingly based on the forces of market since the land marketization began. A proactive role played by local governments has also guided the enterprise location decision through spatial planning and regulatory policies.

Suggested Citation

  • Lei Zhou & Shan Yang & Shuguang Wang & Liyang Xiong, 2017. "Ownership reform and the changing manufacturing landscape in Chinese cities: The case of Wuxi," PLOS ONE, Public Library of Science, vol. 12(3), pages 1-21, March.
    • Handle: RePEc:plo:pone00:0173607
    DOI: 10.1371/journal.pone.0173607
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    References listed on IDEAS

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    2. Liu, Qing & Qiu, Larry D. & Wei, Xing & Zhan, Chaoqun, 2024. "The (dis)connection between R&D and productivity in China: Policy implications of R&D tax credits," Journal of Comparative Economics, Elsevier, vol. 52(1), pages 297-320.

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