Acta Geographica Sinica ›› 2014, Vol. 69 ›› Issue (6): 850-862.doi: 10.11821/dlxb201406011

Previous Articles     Next Articles

Agglomeration and firm location choice of China’s automobile manufacturing industry

ZHAO Junzhu, SUN Tieshan, LI Guoping   

  1. School of Government, Peking University, Beijing 100871, China
  • Received:2013-12-14 Revised:2014-06-02 Online:2014-06-20 Published:2014-06-20
  • Supported by:
    National Natural Science Foundation of China, No.41171099; National Social Science Foundation of China, No.10ZD&022

Abstract: Using the Chinese industrial enterprises database over the period 2001-2009, we analyze the spatial distribution of China's automobile manufacturing industry, by calculating the geographic concentration ratio and the EG index. We find the agglomeration level of China's automobile manufacturing industry has been falling over the period, and the motor vehicle parts manufacturing industry plays an essential role. To analyze the location choice of motor vehicle parts manufacturing start-ups, we build up the conditional logit model using the prefecture level data. The results indicate that: (1) unlike the U.S. and the European countries, the distributions of China's motor vehicle manufacturing firms and motor vehicle parts manufacturing firms are not spatially adjacent, (2) the motor vehicle parts manufacturing startups are labor intensive, which makes the industry's productivity and specialization inefficient, (3) not considering agglomeration economies, the market size and the local protectionism are positive and significant factors that influence the start-ups location choice. Due to all these factors, the specialization and the agglomeration level of China's automobile manufacturing industry is becoming lower.

Key words: spatial distribution, industrial agglomeration, automobile manufacturing industry, location choice