How industrial parks create edge cities and help China grow

A recent study examined the effects of 110 industrial parks near eight cities in China: Beijing, Shanghai, Shenzhen, Tianjin, Dalian, Wuhan, Xi’an, and Chengdu. That encompasses almost 10 percent of all industrial parks in the country.

The researchers measured the areas two kilometres outside the industrial park zones and found that on average, in these neighbouring places, employment increased 41 percent, total factor productivity increased 8 percent, and wages increased 3 percent.

They found that for about 70 percent of the industrial parks they examined, there was also an increase throughout the surrounding area in productivity, or, the ability of firms to create goods efficiently.

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