Papers in Evolutionary Economic Geography

July 15, 2015

# 15.21 Evolution of Production Space and Regional Industrial Structures in China

Filed under: 2015 — Tags: , , , — mattehartog @ 3:07 pm

Qi Guo & Canfei He

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A growing literature on evolutionary economic geography concludes that regional industrial evolution is path-dependent and is determined by the pre-existing industries. This study applies the co-occurrence approach to calculate the production relatedness and portrays the production space and then examines the impact of production relatedness on regional industrial evolution. The findings report that production relatedness does underscore the regional structure change in China but shows significant regional differences in the evolution path. The coastal region has strong tendency of path dependence in its industrial evolution, while North West and South West break the path-dependent trajectory and transition into high productive sectors distant from their own production network. The results suggest that national policies can play its crucial role in creating new paths in China’s regional development. Institutions matter to allow the significant role of industry relatedness in driving regional industrial evolution.

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