Dynamic Externalities and City Industry Growth in China: A Perspective of Economic Transition

2010年01月06日 00:00
Working papers

作者:Canfei He; Fenghua Pan

关键词:产业区位;dynamic externalities; local industrial growth; Industrial specialization; local competition

发表时间:2010-01-06

概要:

Using data on two digit manufacturing industries at the prefecture level cities during the period of 2000 -2005, this study found a significant nonlinear relationship between dynamic externalities and local industrial growth. Industrial specialization and local competition may help city industry growth but hurt local growth when they exceed a certain level. Diversity helps industry growth but only when it reaches a certain level. This study also found that liberalized, globalized and protected industries are more likely to benefit from dynamic externalities. Industries located in cities with greater authorities and responsibilities are also found to grow faster. Regions which are largely liberalized and globalized are more likely to adapt to dynamic externalities, especially competition externalities.

 

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