Market potential and regional inequality of manufacturing in China

doi:10.7523/j.issn.2095-6134.2010.3.006

Abstract

Abstract:

Regional disparity between coastal regions and inland areas expanded tremendously in China during the reform period. Manufacturing sectors continuously concentrated in the coastal regions which aggravated regional inequality. This paper focuses on the role of market accessibility from a NEG perspective and raises a theoretical hypothesis: regional differentiation of market potential is one of the important driving forces which induce unequal economic growth especially unequal manufacturing growth across regions in China during the reform period. A panel dataset from 1978 to 2006 was used to test this hypothesis. Market potential and industrial output are co-integrated. They have temporal concomitance since 1978. Panel model results indicate that market accessibility is statistically significant in explaining spatial inequality of manufacture. Therefore, market accessibility plays a positive role in stimulating growth of manufacturing sectors and its spatial inequality. In China, spatial differentiation in market potential is one of the vital reasons for regional inequality during the reform period.

Key words: market accessibility, market potential, regional inequality, manufacturing, China

CLC Number:

F061.5

ZHAO Zhao, SHI Min-Jun, YUAN Yong-Na. Market potential and regional inequality of manufacturing in China[J]. , 2010, 27(3): 338-349.

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