Back
 AJIBM  Vol.9 No.3 , March 2019
How International Trade Affects the Spatial Pattern of China’s Economic Activities?
Abstract:
This paper has analyzed the impact of international trade mechanisms to spatial economic structure, panel data 2001-2016 China’s 30 provinces, and factors which affect Chinese economic structure of empirical research on trade openness, and found that, on the whole, trade openness has no significant direct effect on China’s economic spatial pattern, and indirectly promotes policy advantages to make economic activities more spatially agglomerate, and to make economic activities more dispersed by promoting transportation infrastructure. From the perspective of the East, Central and West regions, the trade openness directly promotes the agglomeration of the East and West regions. The regional policy advantage is the main mechanism affecting the regional economic agglomeration. The human capital mechanism and the transportation infrastructure mechanism in the eastern region respectively make dispersal and agglomeration; the transportation infrastructure in the central part makes the space more dispersed; the human capital mechanism and the transportation infrastructure mechanism in the western region respectively make the space agglomerate and decentralized. Local governments should strengthen regional cooperation and formulate differentiated trade policies to lead regional industries to drive regional innovation.
Cite this paper: Zhu, Y. (2019) How International Trade Affects the Spatial Pattern of China’s Economic Activities?. American Journal of Industrial and Business Management, 9, 627-646. doi: 10.4236/ajibm.2019.93043.
References

[1]   Fujita, M. and Hu, D. (2001) Regional Disparity in China 1985-1994: The Effects of Globalization and Economic Liberalization. The Annals of Regional Science, 35, 3-37.
https://doi.org/10.1007/s001680000020

[2]   Fally, T., Paillacar, R. and Terra, C. (2010) Economic Geography and Wages in Brazil: Evidence from Micro-Data. Journal of Development Economics, 91, 155-168.
https://doi.org/10.1016/j.jdeveco.2009.07.005

[3]   Wen, W.D. and Zhai, G.M. (2014) Spatial Agglomeration and Export of China’s Manufacturing Industry: Based on Enterprise Level Research. Management World, No. 10, 57-74.

[4]   Allen, T. and Arkolakis, C. (2014) Trade and the Topography of the Spatial Economy. The Quarterly Journal of Economics, 129, 1085-1140. https://doi.org/10.1093/qje/qju016

[5]   Henderson, J.V. (1982) Systems of Cities in Closed and Open Economies. Regional Science and Urban Economics, 12, 325-350. https://doi.org/10.1016/0166-0462(82)90022-9

[6]   Alonso-Villar, O. (2001) Large Metropolises in the Third World: An Explanation. Urban Studies, 38, 1359-1371. https://doi.org/10.1080/00420980120061070

[7]   Brülhart, M. (2011) The Spatial Effects of Trade Openness: A Survey. Review of World Economics, 147, 59-83. https://doi.org/10.1007/s10290-010-0083-5

[8]   Krugman, P. (1980) Scale Economies, Product Differentiation, and the Pattern of Trade. The American Economic Review, 70, 950-959.

[9]   Krugman, P. (1991) Increasing Returns and Economic Geography. Journal of Political Economy, 99, 483-499. https://doi.org/10.1086/261763

[10]   Krugman, P. and Elizondo, R.L. (1996) Trade Policy and the Third World Metropolis. Journal of Development Economics, 49, 137-150. https://doi.org/10.1016/0304-3878(95)00055-0

[11]   Melitz, M.J. (2003) The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity. Econometrica, 71, 1695-1725. https://doi.org/10.1111/1468-0262.00467

[12]   Paluzie, E. (2001) Trade Policy and Regional Inequalities. Papers in Regional Science, 80, 67-85.
https://doi.org/10.1007/PL00011492

[13]   Ades, A.F. and Glaeser, E.L. (1995) Trade and Circuses: Explaining Urban Giants. The Quarterly Journal of Economics, 110, 195-227. https://doi.org/10.2307/2118515

[14]   Nitsch, V. (2006) Trade Openness and Urban Concentration: New Evidence. Journal of Economic Integration, 21, 340-362.

[15]   Kandogan, Y. (2014) The Effect of Foreign Trade and Investment Liberalization on Spatial Concentration of Economic Activity. International Business Review, 23, 648-659.
https://doi.org/10.1016/j.ibusrev.2013.11.005

[16]   Hanson, G.H. (2001) US-Mexico Integration and Regional Economies: Evidence from Border-City Pairs. Journal of Urban Economics, 50, 259-287. https://doi.org/10.1006/juec.2001.2217

[17]   Sjoberg, O. and Sjoholm, F. (2004) Trade Liberalization and the Geography of Production: Ag-Glomeration, Concentration, and Dispersal in Indonesia’s Manufacturing Industry. Economic Geography, 80, 287-310.
https://doi.org/10.1111/j.1944-8287.2004.tb00236.x

[18]   Dix-Carneiro, R. and Kovak, B.K. (2017) Trade Liberalization and Regional Dynamics. American Economic Review, 107, 2908-2946. https://doi.org/10.1257/aer.20161214

[19]   Koenig, P. (2009) Agglomeration and the Export Decisions of French Firms. Journal of Urban Economics, 66, 186-195. https://doi.org/10.1016/j.jue.2009.07.002

[20]   Zhou, K. (2016) Agglomeration and Export: Theory, Facts and Interpretation. Jinan University.

[21]   Fernández, C. (2015) Agglomeration and Trade: The Case of Colombia. Artículos de re-vista.

[22]   Jin, Y., Chen, W. and Lu, M. (2006) Regional Industrial Agglomeration in China: Economic Geography, New Economic Geography and Economic Policy. Economic Research, No. 4, 79-89.

[23]   Akkemik, K.A. and Goksal, K. (2014) Do Exports Explain Industrial Agglomeration and Regional Disparities in Turkey? Journal of International Development, 26, 471-491.
https://doi.org/10.1002/jid.1783

[24]   Egger, P., Huber, P. and Pfaffermayr, M. (2005) A Note on Export Openness and Regional Wage Disparity in Central and Eastern Europe. The Annals of Regional Science, 39, 63-71.
https://doi.org/10.1007/s00168-004-0202-0

[25]   Fujita, M., Krugman, P.R., Venables, A.J., et al. (1999) The Spatial Economy: Cities, Regions and International trade. MIT Press, Cambridge, MA.

[26]   He, C., Guo, Q. and Ye, X. (2016) Geographical Agglomeration and Co-Agglomeration of Exporters and Non-Exporters in China. GeoJournal, 81, 947-964.
https://doi.org/10.1007/s10708-015-9640-8

[27]   Zhao, T. and Jin, X.R. (2011) Research on the Spillover Effect of Export Agglomeration Growth, Foreign Direct Investment and Export Trade. Zhejiang Social Sciences, No. 6, 16-25+155.

[28]   Cosar, A.K. and Fajgelbaum, P.D. (2016) Internal Geography, International Trade, and Regional Specialization. American Economic Journal: Microeconomics, 8, 24-56.
https://doi.org/10.1257/mic.20140145

[29]   Guevara-Rosero, G.C. (2017) The Effect of Trade on Agglomeration within Regions. Journal for Economic Forecasting, No. 1, 75-97.

[30]   Tu, Y.M. (2015) Affect Manufacturing Export Trade of Industrial Agglomeration of Study—Based on New Economic Geography. Reform and Opening Up, No. 21, 22-24.

[31]   Yao, D. and Mao, Ch. (2013) Research on the Impact of International Trade on Regional Urban-Rural Income Gap in China. International Business: Journal of University of International Business and Economics, No. 2, 15-25.

[32]   Luo, Y.Ch. and Gu, R.X. (2014) The Spatial Agglomeration Pattern of China’s Manufacturing Industry from 1980 to 2011 and Its Evolution Trends. Economic Geography, 34, 82-89.

[33]   Midelfart-Knarvik, K.H., Overman, H.G. and Venables, A. (2001) Comparative Advantage and Economic Geography: Estimating the Determinants of Industrial Location in the EU.

[34]   Ge, Y. (2009) Globalization and Industry Agglomeration in China. World Development, 37, 550-559. https://doi.org/10.1016/j.worlddev.2008.07.005

[35]   Shao, W. (2012) Research on the Impact of Foreign Trade on China’s Manufacturing Industry Cluster. Jilin University, Changchun.

[36]   Zhang, C. and Zhao, W. (2009) Opening with Chinese Industrial Agglomeration: Mechanism and Empirical Analysis. International Trade, No. 9, 89-96.

[37]   Yao, P. (2016) How Does Trade Openness Affect the Spatial Layout of Economic Activities? Theory and Empirical Evidence in China. World Economic Papers, No. 6, 75-89.

[38]   Deng, R.B. and Liu, Y. (2016) Industrial Agglomeration, Spatial Spillover and Regional Economic Growth—Study Space Panel Doberman Model. Into Economic Issues, No. 1, 66-76.

[39]   Bao, Q., Shao, M. and Li, G.S. (2012) Differences between Geographical Agglomeration, Industry Concentration and Chinese Enterprises’ Export Models. Management World, No. 9, 61-75.

[40]   Wang, J. and Zheng, X.P. (2013) Industrial Agglomeration: Asymmetry of Regions and Trade Costs. Review of Urban & Regional Development Studies, 25, 61-78.

[41]   Yao, S.J. and Wei, K.L. (2008) An Interactive Empirical Analysis of China’s Economic Growth, Foreign Direct Investment and Export Trade. Economics (Quarterly), No. 1, 151-170.

[42]   Xu, D.Y. and Liang, Q. (2012) Trade Cost and Domestic Industrial Geography. Economics (Quarterly), 11, 1113-1136.

 
 
Top