IDEAS home Printed from https://ideas.repec.org/a/taf/pocoec/v22y2010i3p323-343.html
   My bibliography  Save this article

Geographical agglomeration and co-agglomeration of foreign and domestic enterprises: a case study of Chinese manufacturing industries

Author

Listed:
  • Canfei He
  • Junsong Wang

Abstract

Industrial agglomeration has been pervasive owing to natural advantages, spillover effects and institutional advantages. The co-agglomeration of foreign and domestic enterprises may be a driving force of intra-industrial agglomeration. Theories however provide conflicting predictions on whether foreign and domestic enterprises share similar locations. Based on data from the Annual Survey of Industrial Firms in 2005 in China, this study finds that foreign enterprises are considerably more agglomerated than domestic enterprises, and there exist significant industrial variations in the intra-industry co-agglomeration of foreign and domestic enterprises. Statistical analysis suggests that foreign-specific agglomeration and dependence on intermediate inputs from primary industries discourage the co-agglomeration of foreign and domestic enterprises. Differences in equipment, technology and labour productivity result in locational patterns of foreign enterprises distinct from those of domestic enterprises. Meanwhile statistical results confirm the positive role of external economies and knowledge spillover effects in driving the co-agglomeration of foreign and domestic enterprises.

Suggested Citation

  • Canfei He & Junsong Wang, 2010. "Geographical agglomeration and co-agglomeration of foreign and domestic enterprises: a case study of Chinese manufacturing industries," Post-Communist Economies, Taylor & Francis Journals, vol. 22(3), pages 323-343.
    • Handle: RePEc:taf:pocoec:v:22:y:2010:i:3:p:323-343
    DOI: 10.1080/14631377.2010.498682
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/14631377.2010.498682
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14631377.2010.498682?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. Daniel H. Rosen, 1999. "Behind the Open Door: Foreign Enterprises in the Chinese Marketplace," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 23, April.
    2. Gilles Duranton & Henry G. Overman, 2008. "Exploring The Detailed Location Patterns Of U.K. Manufacturing Industries Using Microgeographic Data," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 213-243, February.
    3. Hogenbirk, Annelies & Narula, Rajneesh, 2004. "Location and agglomeration of FDI in The Netherlands: implications for policy," Research Memorandum 006, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    4. BARRIOS, Salvador & BERTINELLI, Luisito & STROBL, Eric, 2002. "Coagglomeration and growth," LIDAM Discussion Papers CORE 2002053, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lingfan Yang & Xiaolong Luo & Ziyao Ding & Xiaoman Liu & Zongni Gu, 2022. "Restructuring for Growth in Development Zones, China: A Systematic Literature and Policy Review (1984–2022)," Land, MDPI, vol. 11(7), pages 1-32, June.
    2. Lu, Xinhai & Chen, Danling & Kuang, Bing & Zhang, Chaozheng & Cheng, Chen, 2020. "Is high-tech zone a policy trap or a growth drive? Insights from the perspective of urban land use efficiency," Land Use Policy, Elsevier, vol. 95(C).
    3. Junsong Wang & Martha Prevezer, 2015. "Related variety in Chinese cities: local and Foreign Direct Investment related variety and impacts on urban growth," Working Papers 59, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.

    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. Ekaterina Aleksandrova & Kristian Behrens & Maria Kuznetsova, 2020. "Manufacturing (co)agglomeration in a transition country: Evidence from Russia," Journal of Regional Science, Wiley Blackwell, vol. 60(1), pages 88-128, January.
    2. Chong-En Bai & Zhigang Tao & Changqi Wu, 2004. "Revenue Sharing and Control Rights in Team Production: Theories and Evidence from Joint Ventures," RAND Journal of Economics, The RAND Corporation, vol. 35(2), pages 277-305, Summer.
    3. Billings, Stephen B. & Johnson, Erik B., 2012. "A non-parametric test for industrial specialization," Journal of Urban Economics, Elsevier, vol. 71(3), pages 312-331.
    4. Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2011. "Spatial concentration and plant-level productivity in France," Journal of Urban Economics, Elsevier, vol. 69(2), pages 182-195, March.
    5. Kristian Behrens & W. Mark Brown & Théophile Bougna, 2018. "The World Is Not Yet Flat: Transport Costs Matter!," The Review of Economics and Statistics, MIT Press, vol. 100(4), pages 712-724, October.
    6. Yin‐Wong Cheung & Xingwang Qian, 2009. "Empirics Of China'S Outward Direct Investment," Pacific Economic Review, Wiley Blackwell, vol. 14(3), pages 312-341, August.
    7. Juan Tomas Sayago-Gomez & Adam Nowak, 2016. "What is Near and Recent in Crime for a Homeowner? The Cases of Denver and Seattle," Working Papers Working Paper 2016-01, Regional Research Institute, West Virginia University.
    8. Elissa Braunstein & Gerald Epstein, 2002. "Bargaining Power and Foreign Direct Investment in China: Can 1.3 Billion Consumers Tame the Multinationals?," SCEPA working paper series. 2002-13, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    9. William R. Kerr & Scott Duke Kominers, 2015. "Agglomerative Forces and Cluster Shapes," The Review of Economics and Statistics, MIT Press, vol. 97(4), pages 877-899, October.
    10. Antonietti, Roberto & Cainelli, Giulio & Lupi, Claudio, 2013. "Vertical disintegration and spatial co-localization: The case of Kibs in the metropolitan region of Milan," Economics Letters, Elsevier, vol. 118(2), pages 360-363.
    11. K.S. Jomo & Ilene Grabel & Gerald Epstein, 2003. "Capital Management Techniques In Developing Countries: An Assessment of Experiences From the 1990s and Lessons for the Future," Working Papers wp56, Political Economy Research Institute, University of Massachusetts at Amherst.
    12. Giovannetti, Giorgia & Marvasi, Enrico, 2016. "Food exporters in global value chains: Evidence from Italy," Food Policy, Elsevier, vol. 59(C), pages 110-125.
    13. Bernard Bishop, 2007. "Why did China Benefit from a Joint Venture Policy? A Case Study of Shanghai," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 15(2), pages 89-103, March.
    14. NAKAJIMA Kentaro & SAITO Yukiko & UESUGI Iichiro, 2013. "Role of Inter-firm Transactions on Industrial Agglomeration: Evidence from Japanese firm-level data," Discussion papers 13021, Research Institute of Economy, Trade and Industry (RIETI).
    15. Salvador Martínez-Cava & Fernando A. López & MLuz Maté Sánchez-del-Val, 2025. "Spatial Clusters of Gambling Outlet: A Machine Learning Tree-Based Algorithm," Stats, MDPI, vol. 8(1), pages 1-16, January.
    16. Edward L. Glaeser & William R. Kerr, 2009. "Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 623-663, September.
    17. Lisa De Propris & Nigel Driffield & Stefano Menghinello, 2005. "local industrial systems and the location of FDI in Italy," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 12(1), pages 105-121.
    18. Eric Marcon & Florence Puech, 2012. "A typology of distance-based measures of spatial concentration," Working Papers halshs-00679993, HAL.
    19. Jingjing Yang & Helian Xu & Chengang Wang & Mingyong Lai & Yingqi Wei, 2009. "Productivity spillovers from foreign direct investment in Chinese industries," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 7(4), pages 429-446.
    20. Frances Ruane & Xiaoheng Zhang, 2007. "Where do MNEs Expand Production: Location Choices of the Pharmaceutical Industry in Europe after 1992," Papers WP211, Economic and Social Research Institute (ESRI).

    More about this item

    Statistics

    Access and download statistics

    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:taf:pocoec:v:22:y:2010:i:3:p:323-343. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CPCE20 .

    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.