Transformations  in
Business & Economics

STRUCTURAL CHARACTERISTICS OF THE REGIONAL ECONOMIC CORRELATION NETWORK IN EASTERN CHINA. FROM THE PROVINCIAL INDUSTRIAL GRAVITY PERSPECTIVE
Weihua Su, Dongcai Zhang, Nan Wang, Shouzhen Zeng

ABSTRACT. We use the inflow and outflow data of provinces to determine the structural characteristics of eastern China's economic association network. Our findings are as follows. (1) Eastern provinces hold the highest proportion of industrial gravity in China and have the strongest effect on the national economy. (2) The industrial economic structure of the eastern provinces presents the Hebei-Beijing-Tianjin economic nuclear zone with Beijing as the core and the Jiangsu-Shanghai-Zhejiang economic nuclear zone with Shanghai as the core. (3) A comparison of the dual-core economic regions shows that metal smelting and processing; chemical products manufacturing; transport, storage, and postal services; and transport equipment manufacturing are the key industries for the economic development of dual-core economic regions. (4) Metal smelting and processing, chemical products manufacturing, and transport equipment manufacturing mainly affect economic development through the direct demand and supply between the provinces in each core region of the dual-core region. Food and tobacco processing and wholesale and retail trade mainly rely on the circulation between provinces to increase the pulling power of the regional economy.

KEYWORDS:  eastern region, industrial gravity, economic nuclear zone. influence coefficient, production transfer.

JEL classification:  R1, L16, L60.