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Local protectionism and regional specialization: evidence from China’s industries

Journal from gdlhub / 2017-08-14 11:52:53
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, China’s, industries
Url : http://www.elsevier.com/locate/econbase

This paper uses a dynamic panel estimation method to investigate the determinants of regional


specialization in China’s 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 China’s 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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