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Comparative Advantage, Scale Economy and Regional Specialization：An Empirical Analysis Based on China’s Industries

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  • Lu, Zheng
  • Deng, Xiang

Abstract

Current empirical studies on regional specialization mainly focused on measurement of China’s overall regional specialization level, while determinants of industrial geographical distribution, namely the regional specialization pattern, are just paid few attentions. This paper analyzed the regional specialization pattern empirically by employing statistical data of China two-digit industries from 1987 to 2007 through estimating a model which takes comparative advantage and scale economy as driven factors of industrial geographical concentration. Conclusions show that the overall regional specialization of Chinese industries increased between 1987 and 2007, however, it decreased obviously in 1990s. And, scale economy rather than comparative advantage arising from production cost is a long-run factor of China’s industrial geographical distribution.

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  • Lu, Zheng & Deng, Xiang, 2012. "Comparative Advantage, Scale Economy and Regional Specialization：An Empirical Analysis Based on China’s Industries," MPRA Paper 39312, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:39312
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    References listed on IDEAS

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    5. Colin A. Carter & Bryan Lohmar, 2002. "Regional Specialization of China's Agricultural Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 749-753.
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    8. Lu, Zheng & Flegg, A.Tony & Deng, Xiang, 2011. "Regional specialization: a measure method and the trends in China," MPRA Paper 33867, University Library of Munich, Germany.
    9. 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.
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    Cited by:

    1. Yunwei Li & Qiuping Ji & Zijie Wang & Zishan Xiong & Simeng Zhan & Yiping Yang & Yu Hao, 2022. "Green energy mismatch, industrial intelligence and economics growth: theory and empirical evidence from China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(10), pages 11785-11816, October.

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    More about this item

    Keywords

    Comparative Advantage Scale Economy Regional Specialization China;

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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