Has the “Flying Geese” Paradigm Occurred in China?

Qu Yue 1, Cai Fang 2 and Zhang Xiaobo 2 *
1,2 Chinese Academy of Social Sciences
3 International Food Policy Research Institute

 
Abstract: In economic literature, the term “flying geese” refers to the movement of capital from developed regions to less developed ones. Using national data from above scale manufacturing enterprises, this paper investigates whether the experience of “flying geese” has transpired in China for manufacturing industries. We find that, driven by the effects of agglomeration, prior to the mid-2000s, there had been an increasing concentration of industrial activities in the coastal regions. However, as labor and land costs increased, the manufacturing sector – especially the labor-intensive industries – began to relocate from the coastal to the interior regions.
Keywords: manufacturing industries, flying geese, industrial cluster

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