Does ownership matter for industrial agglomeration in China?

Abstract

Economic reform has successfully diversified the ownership structure of the Chinese economy. Different types of industrial enterprises may differ in their incentives and capabilities to reap from agglomeration benefits. Using plant level data from 2007, this study found that foreign enterprises are the most agglomerated while the domestically owned enterprises are spatially dispersed. In many industries, SOEs are the most dispersed and are less likely to co-locate with other types of...