2008•Science of Science and Management of S.& TRequires access

Determinants of Industrial Agglomeration in China

Liu Jun, Kangning Xu

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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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What this paper is about

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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Available 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.

Key concepts: Economies of agglomeration, China, Economic geography, Panel data, Transaction cost, Resource (disambiguation), Economics, Wage

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