| Abstract: |
Using the 2004 China economic census database, this paper examines the impact
of information and communication technologies (ICT) on the geographic
concentration of manufacturing industries, controlling for other determinants
of industrial agglomeration. Higher geographic concentration is found
consistently in industries where ICT are more widely adopted, and the
association is stronger at higher geographic levels. Furthermore, young firms
that have adopted ICT, although they are more footloose, contribute to
industrial agglomeration. High-tech industries with advanced ICT also tend to
agglomerate. Contrary to the prevalent argument that ICT lead to more
dispersion, our study suggests that ICT promote industrial agglomeration. |