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This paper examines the productivity advantage of large cities for creative industries (CIs) in China. Using Chinese firm‐level data for CIs from 2012 to 2014, we find that agglomeration economies, rather than firm selection, determine the difference between the productivity distributions of CIs in large and small cities. There are heterogeneous effects of agglomeration economies, with stronger impacts on productive firms and firms in broadcasting and TV & film. We also find that the productivity advantage of large cities for CIs is stronger when the cities have better communication and transportation infrastructure. Our results imply that the efficacy of place‐based policies for developing CIs depends on local infrastructure. [ABSTRACT FROM AUTHOR]

The rapid increase in the number of returning Chinese scientists in past years has fostered an uneven geography of academic capital in China. Yet, this noteworthy issue has scarcely been discussed in recent literature. This paper attempts to testify whether there is an effect of urban amenities on the location choice of the returning scientists listed by China's Youth Scholar Thousand Talent Plan (YSTTP). Applying a city‐level conditional logit model of skilled migration, it is suggested that YSTTP scientists were substantially driven by urban amenities, such as the scientific environment, and public infrastructures and services for elite residence. In particular, considerable attention was paid to high‐level academic institutions, public transports, healthcare, income, and R&D capability. In contrast, YSTTP scientists were less sensitive to natural amenities and cost of living. Meanwhile, there is evident heterogeneity in the significance of urban amenities among different social groups in terms of their gender, age, whether they choose to work in Alma mater, and where they return from. This study contributes to bridging the current literature of scientific mobility with the amenity‐based approach, and ultimately provides a critical reference for the brain gain policy in China. [ABSTRACT FROM AUTHOR]

This paper investigates the implications of the political incentive system reform for industrial land supply. We study the stronger political incentive for environmental protection in China that resulted from the Cadre Evaluation System (CES) reform in 2013. Using the interaction of municipalities' pre‐CES environmental quality with the introduction of CES reform, we document dirty cities experience a significantly larger decline in industrial land supply following the reform. Also, the reform may have a larger impact on dirtier industries and wealthier cities, and our baseline results are mainly driven by the local leaders who are more likely to be promoted. [ABSTRACT FROM AUTHOR]

Using the difference‐in‐differences method, this paper employs a unique government land transaction dataset at the individual level and investigates how much extra government revenue is generated by the Shanghai Disney Resort through land value appreciation in nearby areas. The results suggest that the Shanghai Disney project significantly increases the nearby land value and then increases local extra government revenue. The average annual extra growth rate was 9.81% (37.01 billion CNY) of Shanghai government revenue from 2009 to 2015 through nearby land value appreciation after the approval of the Shanghai Disney project in 2009. There also exists a heterogeneous impact of the Shanghai Disney project on different types of land value. [ABSTRACT FROM AUTHOR]

The paper investigates the institutional mechanism behind increasing local government debts and default risk in the last decade in China. Using prefectural‐level data from 2010 to 2017, we study the default risk on local government debts through the lens of spatial interactions. Empirical results identify positive spatial interactions of default risk among political neighbouring cities, but not for merely geographic or economic neighbours. Moreover, the spatial interactions vary with local leader's political incentives. These findings altogether suggest the spatial interactions of default risk is driven by political competition among local leaders. The study also rules out alternative explanations such as resource flow effects. [ABSTRACT FROM AUTHOR]

The advent of the "information age" ushered in renewed expectations of systematic urban spatial structure transformation. However, few studies have quantitatively assessed these changes, especially the decentralisation of manufacturing employment. This paper tests hypotheses regarding the decentralisation–centralisation effect of information and communication technology (ICT) on manufacturing. Further, the work employs an IV‐GMM estimation technique to estimate the models, to alleviate potential bias brought by endogeneity. The results suggest that the adoption of ICT is highly related to the decentralisation of manufacturing employment on the city‐proper scale in China. The conclusion drawn is that ICT has shaped the manufacturing decentralisation of cities in China. [ABSTRACT FROM AUTHOR]

This paper investigates the role of selective migration policies in the self‐selection of migrants, taking China's specific household registration (hukou) system as a case study. We first incorporate the hukou system into the self‐selection framework, demonstrating that it leads to a U‐shaped selection pattern of migrants from inland to coastal regions. Based on four periods of census data in China, we further employed the binary logit and conditional logit models to verify our proposed theory. The results imply that the hukou system influences migrant selection through restricting hukou‐related social amenities and distorting return to education by wage discrimination. [ABSTRACT FROM AUTHOR]

This study investigates determinants of science and technology parks (STPs) performance in China. We estimate dynamic panel‐data models on a sample comprising 53 STPs for 2008–2018. Foreign direct investment and human capital impact labour productivity and innovation of STPs and explain differences in performance among them. We find evidence for beta‐ and sigma‐convergence of labour productivity and beta‐, but not sigma‐convergence of innovation. Our study provides novel insights for research on STPs and innovation policy regarding heterogeneity in performance of STPs, and specifically, some evidence concerning formation of "clubs" of STPs based on the city‐tier system in China. [ABSTRACT FROM AUTHOR]

This paper discusses whether high‐speed rail (HSR) construction in China promotes urban economic growth, and it uses social network analysis (SNA) and a panel threshold model. We provide robust evidence that HSR networks have non‐linear effects on the urban economy. Urban location and transportation hub status change as the density of HSR networks increases, and from 2008 to 2017, the national average annual growth rate of the weighted degree centrality (WDC) was 44.93%. We find the WDC and betweenness centrality (BC) have positive influences on urban economic growth. However, HSR network expansion reduces the economic benefits of HSR because the marginal contribution of new HSR lines to economic productivity decreases and there is a crowding out effect caused by excessive agglomeration. HSR networks can promote the economy of Western China to a greater extent and can promote the economy more in small cities than in large and medium‐sized cities. These findings can help the government rationalize its strategy for designing HSR lines in various regions. [ABSTRACT FROM AUTHOR]

Regional inequality in the process of economic growth has recently been a popular topic. This paper creatively proposes contribution decomposition methods to divide various regions' contributions into economic contribution and population contribution. The methods consider not only economic growth but also population change, which may be more effective than the traditional method that uses the per capita GDP (gross domestic product) as its single measurement indicator. Moreover, the objective is to take a step forward and reveal the spatio‐temporal evolution characteristics of regional disparities by integrating barycentre model and economic development equilibrium model. Lastly, the applicability of the research method proposed in this paper is verified by a case study of Jiangsu province, China; the results show a new regional economic pattern in Jiangsu province. [ABSTRACT FROM AUTHOR]

Using high‐speed railway construction as a natural experiment, this paper contributes to our understanding of how passenger‐oriented transportation infrastructure affects inter‐regional trade. The findings show that trade value increases and market segmentation decreases with high‐speed railway (HSR) expansion, indicating that movement of people fosters movement of freight. The heterogeneous analyses suggest that technology‐intensive industries and provinces with poorer pre‐existing ICT level are impacted more. The impact is driven by a substitution effect between HSR and conventional railways in passenger transportation service, and by accelerated information exchange and knowledge spillover. [ABSTRACT FROM AUTHOR]

We examine the convergence of innovation activity across Chinese provinces and untangle how such activity has evolved between 1987 and 2020. Our study reveals which factors matter for innovation and how the significance and relative importance of different factors changed over time. To capture this evolution, we distinguish between three key time periods and identify the existence of temporal effects. We further find that depending on the time‐period, regional innovation activity in China has developed in at least three innovation convergence clubs. We offer useful insights, with theory and policy implications, of the roots of regional innovation convergence and the causes of geographical disparities in China's innovation activity. [ABSTRACT FROM AUTHOR]

Cross‐city spillovers among housing markets are usually modelled by the classical spatial autoregressive models, which usually suffer from identification problems in practice. This paper investigates the cross‐city house price spillovers arising from city network externalities wherein a city's connections with other cities in the urban network create the external house price premium through productivity and amenity gains. Using a cross‐sectional data set for an urban system in eastern China, we present significant evidence for positive network spillovers by the application of spatial lag of X model and spatial Durbin error model. Besides, common shocks are also proved to be responsible for cross‐city dependence of house prices. [ABSTRACT FROM AUTHOR]

This paper examines the localized effect of clusters of universities by exploiting a university town (UT) construction boom in China. We show that UT establishment has generated positive impact on local night‐time light density and population concentration. The UT effect is much localized, and completely decays within 10 km. We emphasize the role of knowledge spillover and find that UT establishment has increased local human capital level. The number of high skill labors as well as high‐tech firms has experienced higher growth in UT districts, as they benefited more from knowledge spillovers. Finally, we find that land prices in the UT have appreciated by 7%‐12% using a unique dataset of land parcel transactions. [ABSTRACT FROM AUTHOR]

This paper investigates the causal relationship between financial development and the urban–rural income gap in China. Using a bootstrap Granger panel causality analysis, the result indicates that financial development influences urban–rural income gap mainly in Eastern China. The high level of financial development in this region enables rural areas to increase its income. Our results also confirm the existence of the financial Kuznets curve in Eastern China where urban–rural income gap would be first increased and afterwards decreased by financial development. The financial development itself is not dependent on urban–rural income gap as it largely depends on government policies and economic growth. [ABSTRACT FROM AUTHOR]

This paper analyses the relationship between community attributes and the subway home-price capitalization effect, asking whether the magnitude of the subway proximity premium is affected by neighbourhood economic status and location. Using longitudinal data from Beijing, the paper estimates that decreasing a community's distance to a subway station by 10 per cent increases the housing price per square metre by 0.2 per cent ~ 0.9 per cent. The paper also shows that, subway capitalization effect is around 0.1 per cent ~ 0.2 per cent lower for communities that have higher quality and charge a 1 Yuan higher property management fee. Moreover, the analysis also reveals that the subway capitalization will decrease by around 0.08 per cent as a community's distance to the central business district (CBD) increases by 1 km. [ABSTRACT FROM AUTHOR]

Drawing upon a panel dataset on China's state‐owned construction land supply at the prefecture level, this paper adopts the spatial panel data model to investigate the existence of spatial dependence in the mechanisms behind China's urban land expansion from 2004 to 2014. The empirical results show that China's urban land expansion has been mainly influenced by a quadruple process of urbanization, industrialization, globalization and decentralization. The strong existence of spatial dependence in China's urban land expansion can be reflected by the significant coefficient estimates of the spatial lags of both the dependent variable and independent variables. [ABSTRACT FROM AUTHOR]

Government-funded urban amenities provide significant values to land markets. This paper uses spatial econometric techniques to recover the puzzling heterogeneity in capitalized values of local amenities such as higher education facilities, transport and environmental amenities. On top of its policy implications, this paper differentiates between non-spatial models and spatial models to allow spatially varying marginal-price estimates and reflect the subtle ways that land markets capitalize local amenities. Our results provide heterogeneous estimates of capitalized amenity values that would affect land development, illustrating the linkage between government-funded amenities and the intensity of land development. [ABSTRACT FROM AUTHOR]

Drawing upon township-level data on high-tech firms of Nanjing, China, this paper adopts a spatial econometric approach to examining the existence of spatial dependence and heterogeneity in the location processes of high-tech firms. The results show that some locational determinants of neighbouring townships exert significant impacts on the attractiveness of a certain township for high-tech firms. Besides, the marginal effects of some locational determinants are found to vary across space. In general, these results point to the need to account for both inter-territorial spillovers and cross-spatial variance in the investigation of factors that influence high-tech firm location. [ABSTRACT FROM AUTHOR]

Cities are not only connected through conventional infrastructure, but also through digital infrastructure. This paper tests whether digital connectivity patterns follow traditional ones. Using a generalized spatial interaction model, this paper shows that geography (and distance) still matters for an extensive set of world cities. With a view to the rapidly rising urbanization, the attention is next focused on the emerging large cities in China to test the relevance of distance frictions − next to a broad set of other important explanatory variables − for digital connectivity. Various interesting results are found regarding digital connectivity within the Chinese urban system, while also here geography appears to play an important role. [ABSTRACT FROM AUTHOR]

This paper examines the impact of land tenure security perceptions on rural-urban migration decisions of rural households, using data collected in Minle County in Northwest China. We find that tenure security perceptions play a significant role in household migration decisions in villages without well-functioning land rental markets but not in villages where the land rental markets are more developed. In villages with underdeveloped land rental markets, households that expect that no land reallocations will occur within their village in the near future are less involved in migration, while households that attach a greater importance to land certificates in protecting land use rights are more involved in migration. [ABSTRACT FROM AUTHOR]

This paper studies the size distribution of exporting and non-exporting firms in a panel of Chinese provinces. The power law exponents of exporting firms are significantly less than those of non-exporting firms. The average power law exponents fell from 0.74 in 1998 to 0.64 in 2007 for exporting firms, and from 1.03 in 1998 to 0.83 in 2007 for non-exporting firms. Further analysis showed that credit constraints have a significant negative effect on the exponents of the size distribution of exporting firms, suggesting that smaller firms are more credit-constrained than larger firms. [ABSTRACT FROM AUTHOR]

This paper estimates the impact of industrial agglomeration on firm-level productivity in Chinese manufacturing sectors. To account for spatial autocorrelation across regions, we formulate a hierarchical spatial model and use a Bayesian instrumental-variable approach. We find that agglomeration of the same industry (i.e., localization) has a productivity-boosting effect, but agglomeration of urban population (i.e., urbanization) has no such effect. In addition, the localization effect increases with the educational levels of employees and the share of intermediate inputs in gross output. These results may suggest that agglomeration externalities occur through knowledge spillovers and input sharing among firms producing similar manufactures. [ABSTRACT FROM AUTHOR]

This paper examines the spatial patterns and determinants of China's interprovincial skilled migration by using data from 2005 one per cent population sample survey. While the coastal region benefits from the influx of skilled labour, the rest of China suffers from severe brain drain. Estimates from zero-inflated negative binomial gravity models indicate that employment opportunities, especially interregional wage differentials, play a dominant role in attracting skilled labour, and that the impact of amenities on skilled migration turns out to be small and less clear. Findings suggest that China's skilled people prioritize their career prospects over the quality of life in the migration decision-making process. [ABSTRACT FROM AUTHOR]

This paper explores the location choice of multinational enterprises (MNEs) in China, shedding special light on the role of agglomeration of same-nationality firms. We examine how this role differs according to firms' productivity. Furthermore, we compare the location choice of Japanese and Taiwanese MNEs in China, taking into consideration that Taiwanese MNEs experience less uncertainty in investing in China due to Taiwan's linguistic and cultural advantages. When considering firms' productivity, we find that less productive Japanese firms prefer to locate close to larger same-nationality agglomerations while there are no differences in location choices in the case of Taiwanese firms. [ABSTRACT FROM AUTHOR]

This paper documents important changes in the Chinese macroeconomic environment over the last three decades. The volatility of Chinese aggregate economic activities has fallen dramatically by nearly 60 per cent during its reform period, a phenomenon that coincides with the ' Great Moderation' that occurred in most industrialized economies. We employ a provincial panel-data method to investigate the driving forces of the increasing macroeconomic stability in China. We examine the empirical relationship between output volatility and various economic, policy, institutional, and demographic factors. Our results suggest that the acceleration of reform toward the market economy, which began around 1994, generally leads to a widespread output volatility reduction across Chinese provinces. Both state-owned enterprise reform and human capital accumulation are important determinants of output volatility since the mid-1990s; they play an important role in explaining the provincial differences on volatility reduction. [ABSTRACT FROM AUTHOR]

This paper explores the impacts of home appliances going to the countryside ( HAGC) in a spatial general equilibrium model. Main findings include the following: ( i) if the manufactured goods are highly differentiated, HAGC reduces the urban-rural real income gap and improves the social welfare; ( ii) if there exists rural-urban migration, the change in the social welfare due to HAGC will experience a U-shaped curve as transportation cost decreases; and ( iii) when the manufactured goods are highly differentiated, or fairly standardized under either very high or low transportation cost, price subsidy should be expanded to all manufactured goods. Otherwise, the optimal policy is laissez-faire. [ABSTRACT FROM AUTHOR]

This study uses Ripley's K‐function to examine the diversity in cross‐region labor mobility under various border effects from heterogeneous policies. Based on manufacturing labour data for Chinese cities, we emphasize the importance of border effects in the formation of regional integration with a Ripley's K‐function analysis. The statistical measures indicate that the amount of labour mobility involves distance‐decay effects of the border. However, the variety in the distance‐decay of the border effects differs considerably between each pair of adjacent regions. For this reason, transport costs caused by natural or economic geography probably explained most of the differences in border effects. [ABSTRACT FROM AUTHOR]

Our existing knowledge of the links between urban growth and commuting patterns are dominated by cases from developed countries. This paper examines the impact of urban growth on workers' commutes using the case of Beijing, which is undergoing rapid economic and spatial restructuring. The results of an analysis of household survey data show that clustered and compact urban development in planned sub-centres is likely to reduce suburban workers' need for a long-distance commute to the city centre when the workers' socio-economic characteristics, the level of transport accessibility and household preferences for residential location are taken into account. Workers employed in the manufacturing sector tend to have shorter commutes and travel within the planned suburban sub-centres. This reveals that the decentralization of employment in the manufacturing sector provides more opportunities to enhance the spatial matches between household residential and job location choices. Household preferences for residential location have an effect on commuting patterns, and high-income workers are likely to accept longer commutes in order to fulfil their residential preferences. Dramatic urban restructuring, in conjunction with changes in lifestyle, is creating new commuting patterns in the rapidly growing cities of China. Resumen El estado actual del conocimiento sobre los vínculos entre el crecimiento urbanístico y los patrones de desplazamiento al trabajo está dominado por ejemplos de países desarrollados. Este artículo examina el impacto del crecimiento urbano en los desplazamientos al trabajo en una ciudad como Pekín, la cual está siendo objeto de una rápida reestructuración económica y espacial. Los resultados del análisis de datos de un muestreo de hogares mostró que es probable que un desarrollo urbano compacto y agrupado en torno a sub-centros planificados a propósito de este modo reduzca la necesidad de largos desplazamientos al trabajo hasta el centro de la ciudad, si se tienen en cuenta las características socioeconómicas de los trabajadores, la facilidad de acceso a transporte y las preferencias de cada hogar en cuanto a la zona residencial. Los trabajadores empleados en el sector manufacturero tienden a realizar desplazamientos más cortos y a viajar dentro de los sub-centros suburbanos planificados. Esto revela que la descentralización del empleo en el sector manufacturero proporciona más oportunidades de mejorar la correspondencia espacial entre la elección de la zona residencial y la del puesto de trabajo. Las preferencias familiares en cuanto a la zona residencial tienen un efecto en los patrones de desplazamiento al trabajo, siendo más probable que los empleados con ingresos más altos estén dispuestos a realizar desplazamientos más largos a cambio de satisfacer sus preferencias residenciales. Una dramática reestructuración urbana, junto con cambios en el estilo de vida, está creando nuevos patrones de desplazamiento al trabajo en las ciudades chinas de rápido crecimiento. [ABSTRACT FROM AUTHOR]

Using 2003–2016 panel data of 278 prefecture‐level Chinese cities, we analysed the relationship between highway construction, resource flow, and urban–rural income gap using multiple spatial econometric models. Overall highway construction has narrowed the urban–rural income gap owing to better population mobility and goods flow. However, while goods flow has narrowed the gap, population mobility has aggravated it. A regional difference in the impact of highway construction also exists, that is, the effect is negative in central and western cities, but positive for eastern cities. Moreover, China's "4 trillion" fiscal and currency stimulus plan has strengthened highway construction in narrowing the income gap. [ABSTRACT FROM AUTHOR]

This study proposes the use of push‐pull‐mooring model to investigate the main factors behind farmers' willingness to withdraw from rural homesteads with unique survey datasets taken from a pilot area in China. Our empirical results, which were derived from partial least squares structural equation modelling, mostly support our theoretical hypotheses, suggesting that policy cognition is a meaningful moderating factor that reflects farmers' individual attitudes, environmental influences, and social norms and plays a significant role in farmers' decision‐making processes. Our findings have strong policy implications for developing a "strategy of rural vitalization" and reforming the current rural homesteads system in China. [ABSTRACT FROM AUTHOR]

The relationship between rural labour transfer and cultivated land use has always been a hot topic in academic field and government management. Here, by using the large‐scale survey data of 1,868 farmers from 37 villages in Jianghan Plain and the low‐hill areas in southeastern Hubei province, we investigated the relationship between rural labour force transfer and decision‐making in cultivated land use from the perspective of terrain heterogeneity. The findings indicate that under different terrain conditions, there are significant differences in the decision‐making of farmers concerning cultivated land use, leading to different land use efficiencies in different areas. Specifically, rural labour force transfer enhances land use efficiency in plain areas; however, it does not affect that in the low‐hill areas. In addition, we found that in the plain areas, improving the quality of rural household labour can increase the cultivated land use efficiency, while in low‐hill areas, enhancement of geographical accessibility is the key to improving land use efficiency. [ABSTRACT FROM AUTHOR]

We analyse a sample of nearly 300 prefectural‐level cities in China, among which about half historically had city walls. We document that cities that had walls in late imperial China have higher population and employment density today, despite that their walls have long gone. Using data from various sources, we test whether a historically walled city's higher density can be explained by a historical urban core, a different industry composition, a different local geography, a compact urban shape, or more valuable rural land in surrounding areas. We find that historically walled cities still have higher density after taking into account all of these factors, which we interpret as evidence of economic persistence. [ABSTRACT FROM AUTHOR]

International organizations approach economies classification differently. This investigation aims to explore a classification framework, named as thresholds of economy groupings, to obtain the thresholds for easily classifying economies. The framework is applied to classify provinces in mainland China, and the resulting thresholds provide instructional values reflecting macroeconomic situation. One result is that the average value of the relative gross domestic product per capita is roughly equal to the threshold between groupings 3 and 4 of five ones during 2009–2014, which implies regional disparities and balanced policy requirement in China. Furthermore, dynamic development tracks are described as different kinds of shapes. [ABSTRACT FROM AUTHOR]

This study focuses on the role of local climate conditions in spurring interregional migration in China over the period 2000 to 2010. We developed a robust empirical approach based on a correlated random effects model and a prefecture‐level panel dataset which allows us to account for both within province migration flows and prefecture‐specific characteristics. Empirical results reveal that climate conditions are important determinants of migration in China. Specifically, prefectures with warmer winter, cooler summer, and more available sunshine are more attractive to migrants. Economic factors such as income level and employment opportunities are also important drivers of population growth. [ABSTRACT FROM AUTHOR]

We study empirically the effects of five different dimensions of agglomeration – specialization, diversity, related variety, unrelated variety, and city size – on the survival chances of new entrepreneurial firms in China. Consideration is further given to studying the mediating effects of local subsidies on new firm survival given different existing local industrial structures in those regions. In support of the ‘regional branching’ hypothesis, we find that increasing local related variety has a stronger positive effect on new firm survival than other types of agglomeration. We also find that receiving comparatively fewer subsidies motivates firms to seek out and benefit from local existing economies, which in turn, positively influence their chances of survival. By contrast, agglomerated firms that receive relatively more subsidies tend to be more likely to face financial distress leading to eventual market exit. The findings thus reveal that both the intensity and the location of state support matters in terms of optimizing positive agglomeration effects on firms' post‐entry performance and survival. [ABSTRACT FROM AUTHOR]

This study estimates how highways affected industrial development in China's peripheral regions between 1998 and 2007, a period during which China experienced rapid growth in highway mileage. Highways between major cities pass through some counties but not others. Based on this difference in counties' access to highways, we conduct a difference-in-difference propensity score matching estimation, with the treatment variables being counties' highway connection status and their industrial performance before and after being connected to a highway. We find that highways promote industrial development in counties with higher output and greater investment levels. Moreover, highways have differential impacts across industries and regions. [ABSTRACT FROM AUTHOR]

This study develops a method to decompose total national indirect value added effects (induced by final demand) into intraregional effects and interregional spillovers. The decomposition is applied to China's 2002 and 2007 interregional input-output tables with foreign-owned processing exports separated from normal exports. First, we find that interregional spillovers account for one quarter to one half of the total national indirect value added multipliers in 2007, with the largest spillovers occurring for the coastal regions. This finding is important when explaining regional value added generation and thus has real implications for regional policy programmes. Second, we develop a new measure, namely, 'net interregional value added spillovers' to position China's individual regions in the global production chains. This measure shows that upstream regions in the Centre, Northwest and Southwest of China are net recipients of interregional value added spillovers generated by foreign exports in coastal regions. Over time, this observation becomes more pronounced. [ABSTRACT FROM AUTHOR]

Applying the methodology developed by Duranton and Overman, we analyse localization and dispersion of firms in China. Using a unique and detailed dataset on manufacturing firms in China, we are able to follow the changes in location patterns of firms between 2002 and 2008. Our analysis shows that firms in China are more localized than in the UK or Japan. Localization is comparable to that in the US, and takes place at relatively small scales that are consistent with the size of Chinese cities. Localization increases rapidly, even in the relative short period between 2002 and 2008, especially new entrants localize. Private firms, firms from Hong-Kong, Macao and Taiwan, and foreign firms are more localized than state-owned firms. Our findings are consistent with the notion that China is increasingly liberalizing its economy, enabling (profit seeking) manufacturing firms to benefit from agglomeration economies. [ABSTRACT FROM AUTHOR]

An innovation-diffusion model was developed with agent-based modelling ( ABM); the model is used to study technical innovation and its diffusion process in China. The results are as follows: only a small fraction of firms conduct independent product-innovation, and most firms prefer imitation and/or purchases; most of the innovative firms are located in the East; approximately three or four technology generation products can exist in the market simultaneously; preferential policies can speed the process of innovation diffusion and improve economies of less developed areas, especially in Middle China; lastly, preferential policies can also improve the labour attractiveness of the Middle, West and Northeast and reduce emigration to the East. [ABSTRACT FROM AUTHOR]

An introduction is presented in which the editor discusses various reports within the issue on topics including volatility of Chinese economic activities, globalization and industrial performance in China, and regional disparities and productivity in China.

This study examines the role of globalization on industrial performance ( IP) in China. Using the data on 21 manufacturing sectors in six years (2005-2010) for 31 provinces/regions, we construct four IP indicators to estimate how globalization influences China's industrial capacity and technological composition through foreign direct investment ( FDI) and foreign trade. The panel estimating results suggest that both FDI and foreign trade generate strong positive effects on manufacturing output and manufacturing exports, but the contributions to industrial upgrading and technological complexity seem to be limited. At the regional level, the effect of FDI and trade on IP is numerically much smaller in the inland area than in the coastal area. [ABSTRACT FROM AUTHOR]

China has promised large cuts in CO2 emissions by 2020, which is likely to have differential effects across regions. We know little about the regional effects of pollution reduction. We make a contribution to filling this gap using a small theoretical model with two regions, features of the Chinese economy and the right to emit CO2 as a factor of production. We find regionally differentiated effects on income, welfare and output and explore government policies designed to reduce these effects. The effects of fiscal policies depend crucially on whether one or both regions respond and on whether output or welfare is targeted. Boosts to productive capacity do better in terms of output but not welfare. [ABSTRACT FROM AUTHOR]

Empirical research on the determinants of regional economic development typically neglects the influence of culture. This study fills that gap by attempting to establish a causal linkage between culture and economic development in the Chinese context. Our empirical analyses are based on a comprehensive economic statistics of China's provinces and prefectures during 1978 to 2008. We use Protestantism as a proxy for culture because Protestant ethic has been linked to the spirit of capitalism and commercial culture in Weber's famous work. To isolate the exogenous variation in culture measure, historical Protestant dissemination is employed as instruments. The estimation results suggest that Christian commercial culture has a significantly positive impact on economic performance - per capita GDP after other important influences (i.e., capital, population, human resources, institutional quality, trade, infrastructure, geography, etc.) are controlled for. We also find heterogeneous effects of culture on economic development in different regions of China. [ABSTRACT FROM AUTHOR]

Stockbreeding industries are increasing rapidly in rural areas around big cities in China. This increase carries high risks to the environment due to emissions of large amounts of water pollutants and greenhouse gases. On the other hand, stockbreeding wastes are a typical biomass resource and can be used as an energy source by advanced technologies. In this study, we selected Miyun County and focused on analysing the synthetic environmental policies as endogenous variables by computer simulation including the introduction of advanced technologies to improve the environment and provide more biomass energy. The model considered both the total ecological system and the socio-economic situational changes. The purpose of our research is to establish effective utilization methods for biomass resources as well as co-ordinate resource reutilization, environmental preservation and economic development, and finally realize sustainable development of the society. [ABSTRACT FROM AUTHOR]

We investigate Zipf's Law on the size distribution and Gibrat's Law on the growth of sub-national populations in China, India and Brazil. We reject Zipf's Law for India, but not for China and Brazil; a log normal distribution also fits Brazil well, but not China and India. Gibrat's Law holds for Brazil; that is, lagged population is the best predictor of current population in Brazil. In China, market potential is an important predictor of population growth, while in India both crop area and market potential are important. Our results show that there is a diversity of experiences across countries, and we speculate that this diversity maybe caused by differences in the characteristics of the three countries. [ABSTRACT FROM AUTHOR]

We analyse per capita GDP convergence among 28 Chinese provinces between 1952 and 2005 using the distribution dynamics approach. Compared with previous studies, we provide a more complete view by including some additional information such as the asymptotic half-life of convergence, mobility indices and the continuous version of the ergodic distributions. In addition, we also extend the analysis to evaluate whether patterns could differ if weighted by either the population living in each province or their economic sizes, together with the existence and magnitude of spatial spillovers. The unweighted, unconditional analysis corroborates and supplements previous findings, especially those indicating that convergence patterns differ strongly under either pre- or post-reform trends. Both the weighted and space-conditioned analyses indicate that convergence could be much faster when these factors are introduced in the analysis. Implications are especially relevant when weighing by population, since results indicate that the number of people escaping from relative poverty would be much higher than the figure predicted by the unweighted analysis. Resumen Analizamos aquí la convergencia del PIB per cápita entre 28 provincias de China entre 1952 y 2005, utilizando el enfoque de evolución dinámica de distribuciones. En comparación con estudios previos, proporcionamos una visión más completa mediante la incorporación de información adicional como la semivida ( half-life) asintótica de la convergencia, índices de movilidad y la versión continua de las distribuciones ergódicas. Además, ampliamos nuestro análisis a evaluar si pudiera haber diferencias en los patrones si se hiciera una ponderación basada en la población que vive en cada provincia o en sus tamaños económicos, junto con la existencia y magnitud de spillovers espaciales. El análisis incondicional, no ponderado, corrobora y complementa resultados de estudios anteriores, especialmente aquellos que indican que los patrones de convergencia difieren en gran medida bajo tendencias pre o post reforma económica. Tanto los análisis de naturaleza espacial como los ponderados indican que la convergencia podría suceder mucho más rápidamente si en el análisis se introdujesen estos factores . Las implicaciones son especialmente relevantes para la ponderación por población, ya que los resultados indican que el número de personas que podrían lograr salir de la una pobreza relativa podría ser mucho mayor que la cifra pronosticada por el análisis no ponderado. [ABSTRACT FROM AUTHOR]

New Economic Geography (NEG) models predict that locations with market access advantages have higher wages and larger labour inflows. Using comprehensive prefecture-city level data for China, the study estimates a wage equation derived from a NEG model. The results support the NEG explanation for wage disparities across cities. An application of shock experiments on 230 prefecture-cities in China shows that the average effect of income changes differs greatly across locations. In particular, income shocks generated in core cities have a higher average impact in the rest of the country than shocks generated elsewhere. [ABSTRACT FROM AUTHOR]

Regional inequality is severe in China since regional development is uneven due to various initial conditions and government policies. We employ unit root tests allowing for structural breaks to alternative inequality measures from 1952 to 2000. Empirical results indicate that (1) the regional inequality is trend stationary with structural breaks rather than following a random walk. Thus, ignoring structural changes might leads to incorrect inference and misleading policy implications; (2) the break points are associated with episodic events in Chinese economic history such as the Cultural Revolution and market reforms. This implies that the policies had a long-lasting and fundamental effect on the inequality. Resumen. La desigualdad regional en China es pronunciada debido a un desarrollo regional dispar causado por un número de condiciones iniciales y políticas gubernamentales. Empleamos pruebas de raíz unitaria que permiten rupturas estructurales ( structural breaks) en medidas de desigualdad alternativas desde 1952 al 2000. Los resultados empíricos indican que (1) la desigualdad regional es de tendencia estacionaria con rupturas estructurales en lugar de seguir un paseo aleatorio ( random walk). Por tanto, el ignorar cambios estructurales podría llevar a una inferencia incorrecta e implicaciones políticas engañosas; (2) los puntos de ruptura están asociados con acontecimientos episódicos de la historia económica china como la Revolución cultural y las reformas del mercado. Esto implica que las políticas tuvieron un efecto duradero y fundamental en la desigualdad. [ABSTRACT FROM AUTHOR]

This study investigates spatial dependence and mechanisms of regional development in Greater Beijing, China by employing spatial statistical techniques. We have detected positive, strengthening global spatial autocorrelation from 1978 to 2001, and found such strengthening is the result of newly formed/extended clusters in the area. The local analysis recognizes local regimes of two-tier urban-rural spatial structure at the beginning of the reform period. While the urban-rural divide was lessening due to the reform, a north-south divide has emerged because of local natural conditions and development trajectories. Regarding mechanisms of regional development, ordinary least squares analysis is constrained by the existence of significant spatial autocorrelation among spatial units. Analytical results reveal that an error spatial regression model is a more appropriate alternative due to possible mismatch between boundaries of the underlying spatial process and the spatial units where data are organised. In 1995 and 2001, the signs of all the regression coefficients remained the same for both OLS and spatial models. However, their magnitude and significance change. Specifically, foreign direct investment and fixed-asset investment became less influential in the spatial model, while local government spending emerged as more influential. Este estudio investiga la dependencia especial y los mecanismos de desarrollo regional en el Gran Beijing, China, empleando técnicas estadísticas espaciales. Hemos detectado una autocorrelación espacial global en aumento y positiva desde 1978 al 2001, y hallado que dicho aumento es el resultado de clusters formados/ampliados recientemente en el área. El análisis local reconoce regimenes locales de estructura espacial urbana-rural de dos niveles al inicio del periodo de reforma. Mientras que la separación urbana-rural fue disminuyendo con la reforma, ha aparecido una separación norte-sur por condiciones naturales locales y trayectorias de desarrollo. Respecto de los mecanismos de desarrollo regional, el análisis de mínimos cuadrados ordinario (OLS) se ve restringido por la existencia de una autocorrelación espacial significativa entre unidades espaciales. Los resultados de análisis revelan que un modelo de regresión del error espacial es una alternativa más apropiada debido a una posible disparidad entre los límites del proceso espacial subyacente y las unidades espaciales donde están organizados los datos. En 1995 y en 2001, los signos de todos los coeficientes de regresión permanecieron iguales para OLS y modelos espaciales. Sin embargo, su magnitud y significancia cambian. En particular, la inversión extranjera directa y la inversión en activos fijos pasaron a ser menos influyentes en el modelo espacial, mientras que el gasto del gobierno local apareció más influyente. [ABSTRACT FROM AUTHOR]