Analyze the Advantages and Disadvantages of International Trade for China

Working title: Analyze the advantages and disadvantages of international trade for China

Resource type:

Journal article Bibliographical entry:

Long, C. and Zhang, X. 2012. Patterns of China's industrialization: Concentration, specialization, and clustering. China Economic Review, Vol. 23, Issue 3: pp. 593-612

Authority

Cheryl Long

She is a professor of economics at Colgate University. Her research interests are in the areas of law and economics, economic development, institutional economics, and transition economics, with a focus on issues related to China's economic reform and transformation. She is working on firm financing and industrial clustering in China now. She has already published many articles in English and Chinese.

Xiaobo Zhang

He is a Professor of College of Life Sciences at Zhejiang University in China. And he also a member of International Food Policy Research Institute in United States.

Currency

This article published in 2012, which means it is a recently article.

Content

It is an article about patterns of China's industrialization. This paper presents a few stylized facts on the patterns of China's industrialization based on data in 1995 and 2004. China has experienced industrialization in the past three decades. Thousands of firms, which specialized in a defined production step, are built together in a densely populated region. It can be called industrial concentration or regional specialization.

Then this paper reviews the literature on the measurement of industrial concentration. Then describes and analyzes the data and presents the patterns of China's industrial based on the measures that mentioned. All of data they used are from the China National Bureau of Statistics and the data spanning a time period of nine years and including industrial firms of all sizes.

Finally, the article provides an analysis the reason why China increased clustering during 1995-2004. In China, some additional factors play important roles in explaining industrial concentration except labour skills and technology. The ownership structure of Chinese firms determines the development of industrial clusters for two reasons. The first one is firms which have different ownership types have different abilities to benefit from regional specialization, and the access to financing may also vary substantially depending on the firm's ownership type. The second one is government in China often have a large presence in determining the development of industrial clusters.

Accuracy This article used many references