Transportation Cost and Industrial Structure: A Test with China's Cross-Regional Data

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Transportation Cost and Industrial Structure: A Test with China's Cross-Regional Data

Published Date

1994-07

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Center for Economic Research, Department of Economics, University of Minnesota

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Working Paper

Abstract

China's cross-regional data are used to test a spatial model in which some relationships among transportation costs, the number of firms, fixed capital investment, and institutional arrangements arise endogenously. We show that the number of firms is positively related to transportation costs, and inversely related to firm's average fixed capital investment. Market mechanism generates more firms than planned mechanism does.

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Discussion Paper
274

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Previously Published Citation

Feng, Q., Gong, C. and Li, S., (1994), "Transportation Cost and Industrial Structure: A Test with China's Cross-Regional Data", Discussion Paper No. 274, Center for Economic Research, Department of Economics, University of Minnesota.

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Feng, Qi; Gong, Changzhen; Li, Shuhe. (1994). Transportation Cost and Industrial Structure: A Test with China's Cross-Regional Data. Retrieved from the University Digital Conservancy, https://hdl.handle.net/11299/55721.

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