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Industrial Agglomeration, Production Networks and FDI Promotion The Case Study of China

Author

Listed:
  • Zhao Jianglin

    (Institute of Asia-Pacific Studies)

  • Zhou Xiaobing
  • Shen Minghui

Abstract

Chinas Industrial clustering is a distinguished economic phenomenon over the last 20 years. It began to enter into its fast track in the mid-1990s and developed rapidly in recent years. Both market-driven force and government-driven force contribute to Chinese industrial clusters. The opening and stable macroeconomic policies create a favorable climate for the industrial clustering. Local government has made its contribution to construction on both hardware and software environments for industrial clusters. The major contribution of FDI to the local industrial clustering lies in helping integrating Chinese domestic industries into international division of labor and at the same time forging a relatively integrated production chain for Chinese domestic industries. At present, China has stepped into the new phase of industrial clusters upgrading. Chinese government is gradually improving the local software infrastructure for industry clustering.

Suggested Citation

  • Zhao Jianglin & Zhou Xiaobing & Shen Minghui, 2008. "Industrial Agglomeration, Production Networks and FDI Promotion The Case Study of China," Macroeconomics Working Papers 22852, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:macroe:22852
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    More about this item

    Keywords

    Industrial Agglomeration; China; Production Networks; FDI; foreign direct investment;
    All these keywords.

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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