Determinants of Industrial Agglomeration in China
Liu Jun, Kangning Xu
Abstract
Liu Jun, Kangning Xu
Abstract
This paper explores the determinants of industrial agglomeration in China based on the provincial panel data during 1999-2005.The main findings are:(1) Resource endowments and transaction cost restrict the industrial agglomeration remarkably.(2) Wage level has a notable impact on industrial agglomeration,and the positive or negative impaction depends on the labor efficiency.(3) Human capital and institutional factors promote industry agglomeration significantly.(4) Coastal areas have geographical advantages of industrial agglomeration.
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This paper explores the determinants of industrial agglomeration in China based on the provincial panel data during 1999-2005.The main findings are:(1) Resource endowments and transaction cost restrict the industrial agglomeration remarkably.(2) Wage level has a notable impact on industrial agglomeration,and the positive or negative impaction depends on the labor efficiency.(3) Human capital and institutional factors promote industry agglomeration significantly.(4) Coastal areas have geographical advantages of industrial agglomeration.
Key concepts: Economies of agglomeration, China, Economic geography, Panel data, Transaction cost, Resource (disambiguation), Economics, Wage