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Regional and sectoral differences in the spatial restructuring of Chinese manufacturing industries during the post-WTO period

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Abstract

Based on the micro level data, this paper examined the spatial changes of Chinese manufacturing industries during 2002–2007. Liberalized and globalized industries are largely concentrated in the coastal region while low technology, resource-based and protected industries are widely dispersed in the inland regions. Some labor-intensive industries in the coastal region encountered congestion effects and are relocated to the central region. Statistical results indicate that industrial enterprises have significantly benefited from the geographical proximity of related enterprises. The agglomeration effects however differ across regions and sectors. The coastal region enjoys both localization and urbanization economies. The western region has no significant localization economies while the central region has no evidence of urbanization economies. The Capital Region enjoys urbanization economies to a certain degree. Both the Yangtze River Delta and the Pearl River Delta have the benefits of agglomeration. The further agglomeration in the PRD however would generate congestion effects. Although labor-intensive industries gain from agglomeration effects they are more likely to suffer from the congestion effects of related enterprises. The empirical findings indicate that agglomeration effects are not pervasive in transitional economies like China. Industrial agglomeration would contribute to productivity improvement only in a globalized and liberalized environment.

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Notes

  1. Manufacturing industries include food processing (S13), food manufacturing (S14), beverage manufacturing (S15), tobacco processing (S16), textiles (S17), garments, shoes and hats making (S18), leather, fur and down products (S19), timber processing, wood, bamboo and grass products (S20), furniture making (S21), papermaking and paper products (S22), printing and copying (S23), cultural, education and sports goods (S24), petroleum refining, coking and nuclear processing (S25), chemical materials and chemical products (S26), medical and pharmaceutical products (S27), chemical fiber (S28), rubber products (S29), plastic products (S30), nonmetal mineral products (S31), ferrous metal smelting and processing (S32), nonferrous metal smelting and processing (S33), fabricated metal products (S34), general machinery (S35), special equipment (S36), transportation equipment (S37), electrical machinery and equipment (S39), telecommunication, computer and other electronic equipment (S40), and instruments, meters and office machinery (S41).

  2. The Capital region includes the Beijing, Tianjin, Shijiazhuang, Tangshan, Qinhuangdao, Baoding, Zhangjiakou, Chengde, Cangzhou, Langfang. The Yangtze River Delta includes Shanghai, Nanjing, Wuxi, Changzhou, Suzhou, Nantong, Yangzhou, Zhenjiang, Taizhou, Hangzhou, Ningbo, Jiaxing, Huzhou, Shaoxing, Zhoushan. The Pearl River Delta covers Guangzhou, Shenzhen, Zhuhai, Foshan, Jiangmen, Zaoqing, Huizhou, Dongguan and Zhongshan.

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Acknowledgments

The authors would like to acknowledge funding from the National Natural Science Foundation of China (41071075,40871065) and the constructive comments and suggestions of the four anonymous referees. The errors remain those of the authors.

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  1. College of Urban and Environmental Sciences, Peking University-Lincoln Institute Center for Urban Development and Land Policy, 100871, Beijing, China

    Canfei He & Junsong Wang

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Correspondence to Canfei He.

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He, C., Wang, J. Regional and sectoral differences in the spatial restructuring of Chinese manufacturing industries during the post-WTO period. GeoJournal 77, 361–381 (2012). https://doi.org/10.1007/s10708-010-9396-0

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