Globalization and Industry Agglomeration in China

SummaryThis paper investigates the linkage between globalization and industry agglomeration in China. The results indicate that the degree of industry agglomeration has significantly increased from 1985 to 2005. Foreign trade and foreign direct investment are closely related to industry agglomeration in China. Industries dependent on foreign trade and foreign investment tend to locate in regions with easy access to foreign markets. Export-oriented and foreign-invested industries have a higher degree of agglomeration than other industries.