Regional industrial evolution in China |
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| Authors: | Canfei He Yan Yan David Rigby |
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| Affiliation: | 1. College of Urban and Environmental Sciences, Peking University, Beijing, China;2. Peking University‐Lincoln Institute Center for Urban Development and Land Policy, Beijing, China;3. College of Urban Economics and Public Administration, Capital University of Economics and Business, Beijing, China;4. Department of Geography, University of California Los Angeles, Los Angeles, CA, USA |
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| Abstract: | Evolutionary economic geography (EEG) indicates that regional industrial development is path dependent. The empirical studies in EEG however have not paid sufficient attention to the importance of global linkages nor the role of regional institutions in driving industrial dynamics. Based on firm level data of four‐digit manufacturing industries during 1998 to 2008 in China, we find that Chinese regions branch into new industries technologically related to the existing industrial portfolio and related industries are less likely to exit. Further analysis reveals that global linkages, economic liberalization and state involvement not only create favourable conditions to allow a larger role of technological relatedness but also generate opportunities for Chinese regions to create new paths of industrial development. |
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| Keywords: | Technological relatedness economic transition industrial evolution path dependence path creation |
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