Understanding Regional Industrial Dynamics in China

Authors: Canfei He*, Peking University
Topics: Economic Geography, China, Business Geography
Keywords: Evolutionary Economic Geography, Regional Industrial Dynamics, Path Dependent, China
Session Type: Paper
Day: 4/4/2019
Start / End Time: 9:55 AM / 11:35 AM
Room: Diplomat Room, Omni, West
Presentation File: No File Uploaded


Economic reform since the late 1970s has caused remarkable industrial dynamics in Chinese regions with new industries replacing failing industries. Evolutionary economic geography (EEG) proposes an endogenous model to explain regional industrial evolution, stressing the importance of knowledge and inter-industry technological relatedness in creating new industries and sustaining incumbent industries in regions and concludes that regional industrial evolution is path dependent. This study will first review the pattern of urban industrial dynamics and discuss the institutional changes for industrial development in China. EEG certainly provides an important perspective to shed light on industrial dynamics in China. The China’s development model however downplays the explanatory power of the endogenous EEG. More emphasis should be paid to the roles of institutional changes, global local interactions, the local and central governments. Moreover, technological relatedness should be expanded to include institutional relatedness, market relatedness and resource relatedness to support the creation of new industries.

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