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This paper used the dynamic panel data from 2004 to 2013 of 21 municipalities in Guangdong Province to study the tendency and the influence factors of regional industrial specialization. We found that in the sample period, the difference of regional industrial specialization showed staged change, however, it kept an uptrend overall. Based on the inequality decomposition of regression equation, we found that the regional original industry specialization was the most important factor of regional industry specialization difference, followed by market potential, wage level, total factor productivity, capital shock, opening degree, reform progress and transport infrastructure. This empirical result indicated the direction of the industrial structure transformation and industry policies formulation in Guangdong Province.

modern economy

Analysis of Regional Industrial Specialization Difference in China &amp;amp; Decomposition Approaches Based on Regression Function: A Case Study of Guangdong Province