China's Economic Opening Fuels Industrial Hubs, Reshaping Regional Dynamics
This paper looks at why industries tend to cluster together in China. The researchers studied data from different provinces between 1987 and 2001. They found that opening up the economy encourages industries to group together. Factors like market size, urbanization, infrastructure, and less government involvement also play a role. Coastal regions have an advantage in attracting companies. By joining the global economy and reducing regulations, even less developed areas can speed up industrial clustering and reduce regional differences.