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The relations between city size and industrial structure (NO 134, 2014, Total 4633)


By He Jianwu, Development of Development Strategy and Regional Economy, Development Research Center of the State Council (DRC)

Report No 134, 2014 (Total 4633)


This is a study of the relationship between a city's size and its industrial structure, through comparing industrial development in urban cities of different sizes. It shows that there is no direct relationship between a city's size and its competitiveness in the mining and electric power industries, and that most of the cities have a strong advantage in being smaller.

Manufacturing competitiveness and city size have an inverted "U" relationship where, for example, a city with a population of 5-10 million has greater competitiveness in manufacturing than others. Resource-based and intermediate input product manufacturing industries are more competitive in smaller cities. The consumer goods and capital goods industries also show an inverted "U" relationship with city size, whereas the service industry shows a weak "U" relationship, and producer services, real estate, culture and entertainment have a directly corresponding relationship. In other words, the greater the city size is, the stronger its competitiveness will be.