City-industry Growth in China

31 Pages Posted: 13 Aug 2008 Last revised: 29 Apr 2015

See all articles by Yi Lu

Yi Lu

School of Business, University of Hong Kong

Joyce Ni

University of Hong Kong

Zhigang Tao

The University of Hong Kong - School of Business

Date Written: April 2009

Abstract

This paper investigates the relevance of the two leading theories for city-industry growth (i.e., specialization and diversity theories) in accounting for the fast yet uneven growth of industries in China's cities. Using the data set of 29 two-digit manufacturing industries in 231 China's cities for the period 1998-2005, we find that specialization promotes city-industry growth, whereas diversity has no effect at all. In addition, we find that specialization is important for the growth of mature industries in China, but diversity is crucial for the development of China's relatively fewer high-tech industries. Our study contributes to the literature by examining the relevance of the specialization and diversity theories for a large and fast-growing developing economy.

Keywords: City-Industry Growth in China, Specialization, Diversity

JEL Classification: R11, O12, L60

Suggested Citation

Lu, Yi and Ni, Juan and Tao, Zhigang, City-industry Growth in China (April 2009). Available at SSRN: https://ssrn.com/abstract=1222182 or http://dx.doi.org/10.2139/ssrn.1222182

Yi Lu (Contact Author)

School of Business, University of Hong Kong ( email )

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HOME PAGE: http://www.fbe.hku.hk/~luyi

Juan Ni

University of Hong Kong ( email )

Pokfulam Road
Hong Kong, Pokfulam HK
China

Zhigang Tao

The University of Hong Kong - School of Business ( email )

Meng Wah Complex
Pokfulam Road
Hong Kong
China
(852) 2857-8223 (Phone)
(852) 2858-5614 (Fax)

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