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Local protectionism and regional specialization: evidence from Chinas industries
By : Chong-En Baia, Yingjuan Dub, Zhigang Taob, Sarah Y. Tong, ELSEVIER (baic@hku.hk3 (C.-E. Bai).)
Created : 2010-06-24, with 1 files
Keyword : Local, protectionism,regional, Chinas, industries
Url : http://www.elsevier.com/locate/econbase
This paper uses a dynamic panel estimation method to investigate the determinants of regional
specialization in Chinas industries, paying particular attention to local protectionism. Less
geographic concentration is found in industries where the past tax-plus-profit margins and the shares
of state ownership are high, reflecting stronger local government protection of these industries. The
evidence also supports the scale-economies theory of regional specialization. Finally, the overall time
trend of regional specialization of Chinas industries is found to have reversed an early drop in the
mid-1980s, and registered a significant increase in the later years.
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