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Geographic Concentration in China's Manufacturing

Abstract This paper empirically examines variations and changes in manufacturing concentration and their determinants in China over the 1980–2003 period with a sample of 26 industries. The analysis indicates that average industrial concentration has increased during the 1990s. Studies show that scale economies and industry policies are important determinants for industries geographical concentration; factor endowments and the location of foreign direct investment are also found to have a positive effect on concentration.