Abstract
This paper examined the impact of vertical specialization on the agglomeration of China’s manufacturing sector from a regional perspective. It also explored the features of the agglomeration process of manufacturing sector in different regions of China. The paper first calculated the degree of vertical specialization and agglomeration respectively by using statistics of 2-digit manufacturing sub-industries at province level from year 2003 to 2008. And then it further built a panel data model to estimate the impact of vertical specialization on the agglomeration of manufacturing sector at both national and regional level. The results of the research reveal the existence of strong regional disparity as to the impact of vertical specialization on agglomeration of China’s manufacturing sector. Vertical specialization is found to be significantly positive related to the formation and development of manufacturing agglomeration at national level. However, this positive effect on national level, as suggested by a more thorough estimation, owes mainly to the positive relation of the two subjects in eastern China. Different from the case in eastern and western China, where vertical specialization stimulates manufacturing sector to be agglomerated, the impact of vertical specialization on agglomeration is negative in the middle part of China.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
- 2.
Results after such correction are better than that without correction, so the text only demonstrated the results of corrected estimation.
References
Chen, Q. (2008). Empirical analysis of agglomeration and specialization of manufacturing industries in China. M.A., Southeast University, Dhaka.
Chen, J. (2009). A study on regional specialization and balanced development from the perspective of global production network. Ph.D., Southeast University, Dhaka.
Chen, J. J., & Xia, F. J. (2006). Vertical division of labor, industry cluster and specialization: Also on structure of industry advantage of the Yangtze River Delta region. Journal of Nantong University (Social Sciences Edition), 22(5), 40–47.
Fujita, M., Krugman, P. R., & Venables, A. J. (1999). The spatial economy: Cities, regions, and international trade. Cambridge, MA: MIT Press.
Helpman, E., & Krugman, P. R. (1985). Market structure and foreign trade: Increasing returns, imperfect competition, and the international economy. Cambridge, MA: MIT Press.
Horgos, D. (2009). Labor market effects of international outsourcing: How measurement matters. International Review of Economics & Finance, 18(4), 611–623.
Hu, Z. L., & Zhang, R. (2008). Analysis on the affecting factors of Chinese manufacture’s participation in international intra-product specialization. World Economy Study, 3, 3–8.
Hummels, D., Ishii, J., & Yi, K. M. (2001). The nature and growth of vertical specialization in world trade. Journal of international Economics, 54(1), 75–96.
Jones, R. W., & Kierzkowski, H. (2005). International fragmentation and the new economic geography. The North American Journal of Economics and Finance, 16(1), 1–10.
Koopman, R., Wang, Z., & Wei, S. J. (2008). How much of Chinese exports is really made in China? Assessing domestic value-added when processing trade is pervasive (No. w14109). National Bureau of Economic Research [online]. Available at: http://www.nber.org/papers/w14109. Accessed September 22, 2011.
Qian, X. F. (2010). The interaction mechanism between international trade and industry agglomeration. Shanghai: Shanghai People’s Publishing House.
Qian, X. F., & Chen, Y. B. (2009). Does global disintegration of production lead to agglomeration? The Journal of World Economy, 12, 27–39.
Wang, B., & Dong, Y. (2005). Theories of specialization from classical to new classical economics. Academic Monthly, 2, 29–36.
Wu, S. M. (2007). Chinese manufacturing industries agglomeration and regional specialization: 1995–2005. Reform, 12, 24–30.
Zang, X., & Li, H. (2011). A study on the interaction between industrial agglomeration and vertical specialization: Based on China’s manufacturing industry. China Industrial Economics, 8, 57–67.
Zong, Y. J. (2008). International intra-product specialization and foreign trade: Empirical study based on the panel-data of Chinese industry. Journal of International Trade, 2, 7–13.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2015 Springer International Publishing Switzerland
About this paper
Cite this paper
Fan, Q., Hu, H. (2015). The Impact of Vertical Specialization on the Agglomeration of China’s Manufacturing Sector: An Empirical Research Based on Province Level Panel Data. In: Bilgin, M., Danis, H., Demir, E., Lau, C. (eds) Innovation, Finance, and the Economy. Eurasian Studies in Business and Economics, vol 1. Springer, Cham. https://doi.org/10.1007/978-3-319-15880-8_17
Download citation
DOI: https://doi.org/10.1007/978-3-319-15880-8_17
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-15879-2
Online ISBN: 978-3-319-15880-8
eBook Packages: Business and EconomicsBusiness and Management (R0)