Working Paper: NBER ID: w19624
Authors: Siqi Zheng; Cong Sun; Ye Qi; Matthew E. Kahn
Abstract: China's rapid economic growth has been fueled by industrialization and urbanization. Given its export focus, this industrialization was spatially concentrated in the coastal eastern cities. Over the last decade, a spatial transformation has taken place leading to a deindustrialization of the rich coastal cities and sharp industrial growth in the inland cities. This survey examines recent work that studies the economic geography of industrial production, per-capita income, pollution and quality of life in China's cities. We focus on the interaction between firms, local governments and the central government that together determine the new economic geography of industry and pollution within China.
Keywords: Industrial Production; Pollution; Urban Quality of Life; China
JEL Codes: L23; L38; L6; R14; R23; R28
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| relocation of industrial activity from coastal to inland cities (R11) | alters the spatial distribution of income and pollution (F64) |
| relocation of industrial activity from coastal to inland cities (R11) | implications for local quality of life (R23) |
| industrial activity migrates inland (R11) | economic geography of pollution changes (F64) |
| economic geography of pollution changes (F64) | increased emissions in inland regions (R11) |
| rising income levels in inland cities (R11) | increasing pollution emissions (Q53) |
| industrial growth in inland cities (N91) | income convergence (F62) |
| industrial growth in inland cities (N91) | raises significant environmental challenges (F64) |
| pollution reduction in coastal cities (Q53) | counterbalanced by pollution increases in inland areas (F64) |