Spatial changes in China's industrial structure

Abstract

This article analyses recent changes in Chinas industrial structure in terms of provincial convergence and divergence, using the structural index and shift-share analysis. The findings show a general consistency across the whole country, although there were regional discrepancies in the late 1990s. Guangdong and Jiangsu are the most competitive provinces overall, due largely to their favourable location and comparative advantages in various industrial sectors. In recent years Guangdong has declined relative to Jiangsu. Shanghai's sectoral and structural advantages increased rapidly in the 1990s due to its flexible industrial production processes, concentration of capital and expertise, and worldwide trade links. In terms of industrial competitiveness, both Shanghai and Beijing are average in relation to China as a whole. Some interior provinces, such as Xinjiang, Sichuan, and Hubei have become increasingly competitive following recent government initiatives relating to the development of the western provinces. The article concludes by considering some policy changes which, if fully implemented, might encourage industrial development throughout the country in turn. This might reduce the traditionally uneven regional pattern. © 2004.