IDEAS home Printed from https://ideas.repec.org/p/ags/aaea13/150402.html
   My bibliography  Save this paper

Industrial Agglomeration of Chinese Food Processing

Author

Listed:
  • Wang, Miao
  • Goldsmith, Peter

Abstract

Food processing has been widely recognized as a traditional, unskilled-labor intensive production. Yet rapid development in technology drives food processing into more sophisticated and technology-oriented industry. This paper utilizes a fixed effects model to test the hypothesis that the food processing industry is a high technology industry. The research employs a unique natural experiment where some provincial governments in China liberalized migration policies for highly educated/highly skilled (HEHS) workers. Theory holds that such labor liberalization policies will increase the level of industrial agglomeration by high technology firms facing a shortage of talent. The data are the 2001-2010 3-digit industrial and provincial level employment data from the China Labor Statistical Yearbook. This paper found strong evidence that the HEHS labor pool affected the location decision of food processing firms in China. The result supports recent literature that the food and agribusiness sector is increasingly dependent on knowledge workers and high technology. Other traditional determinants for industrial agglomeration; scale economies and proximity to markets are also found to promote industrial agglomeration in the food processing industry.

Suggested Citation

  • Wang, Miao & Goldsmith, Peter, 2013. "Industrial Agglomeration of Chinese Food Processing," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150402, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150402
    DOI: 10.22004/ag.econ.150402
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/150402/files/SECONDPAPER_FINAL_edition.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.150402?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
    ---><---

    References listed on IDEAS

    as
    1. Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
    2. Grant, Hugh, 2012. "Farmers, Food and the Future: Take Action Now to Attract the Next Generation of Agricultural Leaders," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(A), pages 1-3, June.
    3. Jonathan Gruber & Aaron Yelowitz, 1999. "Public Health Insurance and Private Savings," Journal of Political Economy, University of Chicago Press, vol. 107(6), pages 1249-1274, December.
    4. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 1077-1106.
    5. Krugman, Paul & Venables, Anthony J., 1996. "Integration, specialization, and adjustment," European Economic Review, Elsevier, vol. 40(3-5), pages 959-967, April.
    6. Hakan Yilmazkuday, 2011. "Agglomeration And Trade: State‐Level Evidence From U.S. Industries," Journal of Regional Science, Wiley Blackwell, vol. 51(1), pages 139-166, February.
    7. Lyons, T.P. & Connolly, Aidan J., 2012. "The People Question: Creating Global Advantage through Global Talent Initiatives," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(A), pages 1-6, June.
    8. Alwyn Young, 2000. "The Razor's Edge: Distortions and Incremental Reform in the People's Republic of China," NBER Working Papers 7828, National Bureau of Economic Research, Inc.
    9. Kim, Kijin, 2013. "The Effects of the Clean Air Act on Local Industrial Wages," 6th Annual Midwest Graduate Student Conference on Regional and Applied Economics (CRAE), April 5-6, 2013, Columbus, Ohio 147489, Midwest Graduate Student Conference on Regional and Applied Economics (CRAE), The Ohio State University, Department of Agricultural, Environmental and Development Economics.
    10. David H. Autor, 2003. "Outsourcing at Will: The Contribution of Unjust Dismissal Doctrine to the Growth of Employment Outsourcing," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 1-42, January.
    11. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    12. Thomas J. Holmes & John J. Stevens, 2002. "Geographic Concentration and Establishment Scale," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 682-690, November.
    13. Rademakers, Martijn F.L., 2012. "Achieving Corporate Learning Excellence," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(A), pages 1-4, June.
    14. Duerksen, Gregory J., 2012. "Winning the War for Talent," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(A), pages 1-5, June.
    15. Thomas J. Holmes, 1999. "Localization Of Industry And Vertical Disintegration," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 314-325, May.
    16. Edward L. Glaeser & Glenn Ellison, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," American Economic Review, American Economic Association, vol. 89(2), pages 311-316, May.
    17. Shelman, Mary & Connolly, Aidan J., 2012. "The Human Capital Issue: Ensuring the Future of Food and Agribusiness," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(A), pages 1-2, 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. Lu, Jiangyong & Tao, Zhigang, 2009. "Trends and determinants of China's industrial agglomeration," Journal of Urban Economics, Elsevier, vol. 65(2), pages 167-180, March.
    2. 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.
    3. Kristian Behrens & Mark Brown & Théophile Bougna, 2014. "The Determinants of Agglomeration Redux: Transportation, Trade, and Input-Output Linkages," ERSA conference papers ersa14p32, European Regional Science Association.
    4. Mikhailova, Tatiana, 2017. "Joint Localization of Different Branches of Russian Industry," Working Papers 041721, Russian Presidential Academy of National Economy and Public Administration.
    5. John Rand & Finn Tarp & Neda Trifković & Helge Zille, 2019. "Industrial agglomeration in Myanmar," WIDER Working Paper Series wp-2019-3, World Institute for Development Economic Research (UNU-WIDER).
    6. J. Vernon Henderson, 2003. "Urbanization and Economic Development," Annals of Economics and Finance, Society for AEF, vol. 4(2), pages 275-341, November.
    7. Freedman, Matthew L., 2008. "Job hopping, earnings dynamics, and industrial agglomeration in the software publishing industry," Journal of Urban Economics, Elsevier, vol. 64(3), pages 590-600, November.
    8. 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.
    9. Yilin Dong, 2020. "Determinants of entry: Evidence from new manufacturing firms in the U.S," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1542-1561, December.
    10. LAFOURCADE, Miren & MION, Giordano, 2003. "Concentration, spatial clustering and the size of plants : disentangling the sources of co-location externalities," LIDAM Discussion Papers CORE 2003091, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    11. Florian Noseleit, 2020. "The Role of Entry and Market Selection for the Dynamics of Regional Diversity and Specialization," Regional Studies, Taylor & Francis Journals, vol. 49(1), pages 76-94, July.
    12. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
    13. Elisenda Paluzie & Jordi Pons & Daniel Tirado, 2001. "Regional Integration and Specialization Patterns in Spain," Regional Studies, Taylor & Francis Journals, vol. 35(4), pages 285-296.
    14. Jordi Jofre-Monseny & Raquel Marín-López & Elisabet Viladecans-Marsal, 2012. "What underlies localization and urbanization economies? Evidence from the location of new firms," Working Papers 2012/9, Institut d'Economia de Barcelona (IEB).
    15. Barrios, Salvador & Bertinelli, Luisito & Eric, Strobl & Antonio Carlos, Teixeira, 2003. "Agglomeration Economies and the Location of Industries: A comparison of Three small European Countries," MPRA Paper 5704, University Library of Munich, Germany.
    16. repec:esx:essedp:729 is not listed on IDEAS
    17. Head, Keith & Mayer, Thierry, 2004. "The empirics of agglomeration and trade," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 59, pages 2609-2669, Elsevier.
    18. Getu Hailu & B. James Deaton, 2016. "Agglomeration Effects in Ontario’s Dairy Farming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(4), pages 1055-1073.
    19. 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.
    20. Tian, Wenjia & Wang, Zhi & Zhang, Qinghua, 2024. "Land allocation and industrial agglomeration: Evidence from the 2007 reform in China," Journal of Development Economics, Elsevier, vol. 171(C).
    21. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," 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 247-348, Elsevier.

    More about this item

    Keywords

    International Development; Labor and Human Capital; Research and Development/Tech Change/Emerging Technologies;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:aaea13:150402. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    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.