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Regional industrial evolution in China
Author(s) -
He Canfei,
Yan Yan,
Rigby David
Publication year - 2018
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/pirs.12246
Subject(s) - china , economic geography , liberalization , business , manufacturing , portfolio , economics , industrial organization , geography , market economy , archaeology , finance , marketing
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.