Regional Development of China on the Eve of the Transition to Post-industrialization
Abstract
The article shows how different approaches to regional development help accelerate and improve the efficiency of modernizing the Chinese economy. The authors’ conclusions are based on the analysis of the dynamics of indicators of industrial development and post-industrialization of China’s regions at the macro- and micro-sectoral levels, as well as official plans for territorial development. It has been established that China pursues two types of regional industrial policy. At the macro-sectoral level, policies have changed dramatically. From the beginning of the reforms, during the active phase of industrialization, which the Chinese leadership saw as a temporary stage of modernization, the development took place in the locations where it could be done as cheaply and quickly as possible, with the involvement of hundreds of millions of labor migrants. In 2010s the transition to the post-industrial prosperous society required the development of a system of cities as the basis of consumer demand and industry as the basis of most branches of the service sector simultaneously in all regions of the country. An information and communication space accessible to residents and businesses of all regions has been created. At the micro-sectoral level, regional policy has remained the same: each locality has a unique industrial or service specialization and is integrated into the chains of the Chinese division of labor. This is called a block economy of several thousand clusters, and each cluster has hundreds of enterprises producing a narrow range of similar products.
About the Authors
D. В. КalashnikovRussian Federation
Denis B. Кalashnikov - Ph. D. (Econ.), Associate Professor of World Economy Department
Vernadskogo Avenue, 76, Moscow, 119454
I. В. Мitrofanova
Russian Federation
Irina B. Мitrofanova - Ph. D (Econ.), Associate Professor, Deputy Dean of the Faculty of Foreign Relations
Vernadskogo Аvenue, 76, Moscow, 119454
References
1. Ai C. H., Wu H. C. (2017). Cross-Regional Corporations and Learning Effects in a Local Telecommunications Industry Cluster of China. Journal of the Knowledge Economy. No. 8, pp. 337-355. DOI: 10.1007/s13132-015-0263-6.
2. Chen X., Liu Z., Ma C. (2017). Chinese innovation-driving factors: regional structure, innovation effect, and economic development – empirical research based on panel data. The Annals of Regional Science. Vol. 59, pp. 43-68. DOI: 10.1007/s00168-017-0818-5.
3. Cheng H., Hu D., Li H. (2020). Wage Differential between Rural Migrant and Urban Workers in the People’s Republic of China. Asian Development Review. Vol. 37, no. 1, pp. 43-60. DOI: 10.1162/adev_a_00140.
4. Chu B., Zhang H., Jin, F. (2010). Identification and comparison of aircraft industry clusters in China and United States. Chinese Geographical Science. Vol. 20, pp. 471-480. DOI: 10.1007/s11769-010-0421-5.
5. Chubarov I. G. (2020). State-level regional development programs in China. East Asia: Facts and Analytics. No. 4, pp. 21-33 (in Russian). DOI: 10.24411/2686-7702-2020-10022.
6. Chung L., Tan K. H. (2017). The unique Chinese innovation pathways: Lessons from Chinese small and medium sized manufacturing firms. International Journal of Production Economics. Vol. 190, pp. 80-87. DOI: 10.1016/j.ijpe.2016.09.004. Development… (2018).
7. Wu Y. et al. Development of characteristic towns in China. Habitat International. Vol. 77, pp. 21-31. DOI: 10.1016/j.habitatint.2017.12.008.
8. Entrepreneurship… (2019). Zhu X. et al. Entrepreneurship and industrial clusters: evidence from China industrial census. Small Business Economics. Vol. 52, pp. 595- 616. DOI: 10.1007/s11187-017-9974-3.
9. Ge Y. (2009). Globalization and Industry Agglomeration in China. World Development. Vol. 37, no. 3, pp. 550-559. DOI: 10.1016/j.worlddev.2008.07.005.
10. Geographic… (2021). Zhang X. et al. Geographic concentration of industries in Jiangsu, China: a spatial point pattern analysis using micro-geographic data. The Annals of Regional Science. Vol. 66, pp. 439-461. DOI: 10.1007/s00168-020-01026-x.
11. Gilbert R. J. (2020). Innovation Matters: Competition Policy for the High-Technology Economy. Berkeley: The MIT Press, 324 pp. DOI: 10.7551/mitpress/12686.001.0001.
12. Harrison B. (1992). Industrial Districts: Old Wine in New Bottles? Regional Studies. Vol. 26, no. 5, pp. 469-483. DOI: 10.1080/00343409212331347121.
13. He C. (2008). Foreign Manufacturing Investment in China: The Role of Industrial Agglomeration and Industrial Linkages. China and World Economy. Vol. 16, no. 1, pp. 82-99. DOI: 10.1111/j.1749-124X.2008.00101.x.
14. He C. (2012). Modernization Science: The Principles and Methods of National Advancement, Berlin: Springer Heidelberg. 648 pp. DOI: 10.1007/978-3-642-25459-8.
15. He C., Pan F., Chen T. (2016). Research progress of industrial geography in China. Journal of Geographical Sciences, vol. 26, pp. 1057-1066. DOI: 10.1007/s11442-016-1315-y.
16. He C., Wang J. (2010). Geographical agglomeration and co-agglomeration of foreign and domestic enterprises: a case study of Chinese manufacturing industries. Post-Communist Economies, vol. 22, no. 3, pp. 323-343. DOI: 10.1080/14631377.2010.498682.
17. Hong J., Fu S. (2011). Information and Communication Technologies and the Geographical Concentration of Manufacturing Industries: Evidence from China. Urban Studies. Vol. 48, no. 11. DOI: 10.1177/0042098010388956.
18. Hu X., Hassink R. (2017). New perspectives on restructuring of old industrial areas in China: A critical review and research agenda. Chinese Geographical Science. Vol. 27, pp. 110-122. DOI: 10.1007/s11769-015-0784-8.
19. Hu X., Xu W., Miao J. T. (2021). Think locally, act locally: A critique of China’s specialty town program in practice. Geographical Review. Vol. 111, no. 3, pp. 393-414. DOI: 10.1080/00167428.2020.1793337.
20. Human… (2017). Li H. et al. Human Capital and China’s Future Growth. Journal of Economic Perspectives. Vol. 31, no. 1, pp. 25-48.
21. Kim D., Kim S., Lee J. S. (2022). The rise and fall of industrial clusters: experience from the resilient transformation in South Korea. The Annals of Regional Science. DOI: 10.1007/s00168-022-01170-6.
22. KNR…. (2015). Ostrovski A. V. (ed.). P.R. C.: regional economy. Мoscow: MBA, 660 pp. (in Russian).
23. Kondrashova L., Kornejchuk N. (1998). P.R. C.: Regional economical policy. Moscow: IMEPI RAS, 152 pp. (in Russian).
24. Li Q., Kovacs J. F., Choi G. H. (2021). High-technology employment growth in China: geographic disparities in economic structure and sectoral performance. Economic Change and Restructuring. Vol. 54, pp. 1025-1064. DOI: 10.1007/s10644-020-09293-6.
25. Li Y., Tellis G. J. (2016). Is China uniform? Intra-country differences in the takeoff of new products. Technovation. Vol. 47, pp. 1-13. DOI: 10.1016/j.technovation.2015.08.002.
26. Liang C., Wang S. (2020). Low-Skilled Immigrants and Urban Development in China: A Labor Market Perspective. Asian Economic Papers. Vol. 19, no. 1, pp. 114-128. DOI: 10.1162/asep_a_00760.
27. Lin J. Y., Wang Y. (2020). Structural Change, Industrial Upgrading, and Middle-Income Trap. Journal of Industry, Competition and Trade. Vol. 20, pp. 359-394. DOI: 10.1007/s10842-019-00330-3.
28. Liu W., Song Z., Liu Z. (2016). Progress of economic geography in China’s mainland since 2000. Journal of Geographical Sciences. Vol. 26, pp. 1019-1040. DOI: 10.1007/s11442-016-1313-0.
29. Liu Y.,Zhou Y. (2021). Territory spatial planning and national governance system in China. Land Use Policy. Vol. 102. DOI: 10.1016/j.landusepol.2021.105288.
30. Liu Z. (2014). Global and Local: Measuring Geographical Concentration of China’s Manufacturing Industries. The Professional Geographer. Vol. 66, no. 2, pp. 284-297. DOI:10.1080/00330124.2013.784953.
31. Ma X. (2018). Labor Market Segmentation by Industry Sectors and Wage Gaps between Migrants and Local Urban Residents in Urban China. China Economic Review. Vol. 47, pp. 96-115.
32. Makeeva S. B. (2021). Transformation of the Regional Policy of Russia and China under the Conditions of Unequal Development of Regions (1980–2020): a Comparative Historical Study. Comparative Politics Russia. No. 3, pp. 98-111 (in Russian). DOI: 10.24411/2221-3279-2021-10030.
33. Maskell P. (2001). Towards a Knowledge-Based Theory of the Geographic Cluster. Industrial and Corporate Change. Vol. 10, pp. 921-936.
34. Mozias P. M. (2023). Intraprovincial Inequality and Regional Policy in China. Social Sciences and Humanities: Domestic and Foreign Literature. Series 9: «Oriental and African Studies». No. 1, pp. 98-126 (in Russian). DOI: 10.31249/rva/2023.01.00.
35. Otsuka K. (2006). Cluster-Based Industrial Development: A View From East Asia. The Japanese Economic Review. Vol. 57, pp. 361-376. DOI: 10.1111/j.1468-5876.2006.00376.x.
36. Pestsov S. K. (2019). Regional development management: China experience. Fundamental’nyye issledovaniya. No. 10, pp. 57-63 (in Russian).
37. Porter M. E. (1998). Clusters and the new economics of competition. Harvard Business Review. Vol. 76, no. 6, pp. 77-90.
38. Porter M. E. (2003). The Economic Performance of Regions. Regional Studies. Vol. 37, pp. 549-578.
39. Regional’naya… (2015). Kuznetsov A. V., Kuznetsova O. V. (eds.). Regional Policy: Foreign Experience and Russian Realities. Moscow: IMEMO, 137 pp. (in Russian).
40. Sovremennoye… (2020). China’s New Materials Industry Development Status and 14th Five-Year Plan Prospect Analysis Report 2020. Beijing: Zhongyang Zhiye Yanjiusuo, 248 pp. (in Chinese).
41. Uglublenniy… (2020) 2021-2025 China’s regional industrial planning in-depth analysis and development strategy research report (in 4 Vol.). Shenzhen: Zhongtou guwen, 1138 pp. (in Chinese).
42. Venables A. J. (1996). Equilibrium Locations of Vertically Linked Industries. International Economic Review. Vol. 37, no. 2, pp. 341-359.
43. Wang C., Lin G., Li G. (2010). Industrial Clustering and Technological Innovation in China: New Evidence from the ICT Industry in Shenzhen. Environment and Planning A: Economy and Space. Vol. 42, no. 8, pp. 1987-2010. DOI: 10.1068/a4356.
44. Yang C. H., Huang C. H. (2018). Agglomeration, ownership, and R&D activity: firm-level evidence from China’s electronics industry. Empirical Economics. Vol. 54, pp. 1673-1696. DOI: 10.1007/s00181-017-1292-8.
45. Yin Z., Xue G., Guo P. (2019). The Impact of Mobile Payment on Entrepreneurship – Micro Evidence from China Household Finance Survey. China Industrial Economics. No. 3, pp. 119-137.
46. Zhang J., Xia T. (2019). The change and reconstruction of spatial planning system under the goal of modern national governance. Journal of Natural Resources. Vol. 34, no. 10, pp. 2040-2050. DOI: 10.31497/zrzyxb.20191002.
47. Zhu S., He C., Xia X. (2019). Geography of productivity: evidence from China’s manufacturing industries. The Annals of Regional Science. Vol. 62, pp. 141-168. DOI: 10.1007/s00168-018-0890-5.
Review
For citations:
Кalashnikov D.В., Мitrofanova I.В. Regional Development of China on the Eve of the Transition to Post-industrialization. Outlines of global transformations: politics, economics, law. 2023;16(1):128-146. (In Russ.)