Domestically Flying Geese
This paper examines the evolving patterns of bilateral city-to-city manufacturing investment flows from 2000 to 2015 in China, which are aggregated from detailed firm-level investment transactions based on the administrative business registration database. The coastal regions were a more favorable destination for manufacturing investment prior to 2006 despite their higher wage levels. Since then, the trend has reversed, that is, the inland regions have attracted a growing share of manufacturing investment. The pattern is more pronounced for labor intensive manufacturing industries. The wage gap between coastal and inland cities is the main driver behind the giant flying geese, the relocation of manufacturing firms from coastal to inland areas.
| Main Authors: | , |
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| Format: | Journal Article biblioteca |
| Language: | English en_US |
| Published: |
Published by Oxford University Press on behalf of the World Bank
2023-03-14
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| Subjects: | WAGE GAP, FLYING GEESE, INVESTMENT FLOWS, INDUSTRIAL TRANSFER, |
| Online Access: | http://documents.worldbank.org/curated/en/099913012072382678/IDU0cc4b9fcf04e5d04f09093ca0fea26ea27bdf https://hdl.handle.net/10986/41281 |
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| Summary: | This paper examines the evolving
patterns of bilateral city-to-city manufacturing investment
flows from 2000 to 2015 in China, which are aggregated from
detailed firm-level investment transactions based on the
administrative business registration database. The coastal
regions were a more favorable destination for manufacturing
investment prior to 2006 despite their higher wage levels.
Since then, the trend has reversed, that is, the inland
regions have attracted a growing share of manufacturing
investment. The pattern is more pronounced for labor
intensive manufacturing industries. The wage gap between
coastal and inland cities is the main driver behind the
giant flying geese, the relocation of manufacturing firms
from coastal to inland areas. |
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