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2018 | OriginalPaper | Chapter

5. Empirical Investigation of Home Market Effect: New Evidence from China

Author : Jian Wang

Published in: Economic Analysis of Industrial Agglomeration

Publisher: Springer Singapore

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Abstract

Spatial economics, also called new trade theory (NTT) and new economic geography (NEG), has made much progress in trade theory and economic geography over the past three decades.

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previous chapter Industrial Dispersion: An Analytical Model
next chapter Conclusions
Footnotes
1
The agricultural sector is assumed to exhibit a constant return to scale, perfect competition, homogeneity of goods, and zero transport costs.
 
2
It is noteworthy that, despite the close relationship between \( k_{i} (T) \) (firm share) and \( w_{i} (T) \) (wages) shown in (10), \( k_{i} (T) \) has a more complicated pattern when it is considered in multiregional situations. Uchikawa and Zeng (2014) investigate the relation between firm share and transport costs in a multiregional space and find that the \( k_{i} (T) \) presents a more complicated pattern response to \( T \). This result implies that we have to be prudent when testing HME in multiple regions. It seems reasonable to choose to empirically investigate the U-pattern in terms of wages other than firm share.
 
3
The two main regions defined in this chapter are the coastal ones and the interior ones. The coastal region consists of Liaoning, Beijing, Tianjin, Hebei, Shandong, Jiangsu, Shanghai, Zhejiang, Fujian and Guangdong); the interior consists of the central provinces (Shanxi, Anhui, Jiangxi, Hunan, Henan, Hubei, Heilongjiang, Jilin) and those in the west (Gansu, Qinghai, Ningxia, Xinjiang, Inner Mongolia, Guangxi, Sichuan, Chongqing, Guizhou, Yunnan, and Shaanxi). We have excluded Xizang and Hainan from the western and coastal regions respectively, due to lack of data.
 
Metadata
Title
Empirical Investigation of Home Market Effect: New Evidence from China
Author
Jian Wang
Copyright Year
2018
Publisher
Springer Singapore
Book
Economic Analysis of Industrial Agglomeration

Print ISBN: 978-981-10-7436-3

Electronic ISBN: 978-981-10-7437-0

Copyright Year: 2018

DOI
https://doi.org/10.1007/978-981-10-7437-0_5